What would you do with $50,000?

14 Replies

What would you do with $50,000 and less than perfect credit but with 30+ years of residential construction experience? I want to flip in KC, Omaha or Memphis, these markets are all within an arms reach of where I am now and I'm ready to relocate. 

I heard that KC has a pretty decent baseball team :) 

Hello @Ron Olivera , to answer your question concisely. What I would do with 50k and assuming I wanted to flip. I would try and tap into that 50k only as a last resort. Build up a network of private money or hard money lenders. Build some criteria that works within those markets. Then get your criteria into the ears of as many agents as possible. Try driving for dollars or direct mail if you can as well. 

Use other peoples money to get yourself into the flip. If possible, use their money for the rehab as well. Keep your money in the bank to bail yourself out if things don't go so well on the first few attempts. Rinse and repeat. Build a strategy that is scalable and franchise-able. Examine other markets after a period of time to move to if necessary. In case one of your markets deviates from your current criteria. 

Flip enough houses that you can hire someone to "assist" with your projects. Teach them the system. Build an incentivized program to help them eventually work on their own. Hire a second person to be the first persons assistant. Have them learn the process. Move to other markets that meet your criteria if necessary. Rinse and repeat. 

Look back 10 years from now on the empire you've built. Create a company that is autonomous and doesn't require your attention full time. Travel that world. Enjoy your kids. Have 6 day weekends. Look into your bank account and see that 50k become 5,000k. Hopefully without a cent leaving the entire time. 

Thats what I would do with 50k. 

Use (don't spend) your 50k as many times as you can.  Here's how.

1 - Buy/rehab a house for $50k...sell for $75k
2 - Bank the $25k profit
3 - Do #1 again
4 - Do #2 again
5 - Combine profits from #'2 2 and 4, the original $50, and....
6 - Buy/rehab 2 properties and the same time
7 - Take profits (2) from #6, combine, and...
8 - Buy/rehab 3 properties at the same time.
9 - Now, execute a combination of flips and holds (refi's...use partners with credit if needed), three properties at a time until,...
                ...your arm gets tired.

Thank you Joe, yours and Sam's post are exactly my plan. I'm still a few weeks from the bucks so I'm constantly trying to see if there's any holes in my plan (and I'm sure there's many). 

This will be likely the last chance in my life to do anything with that kind of money so I want to make sure I do the best with this opportunity.    

I will be investing in Omaha, to start with. I have some rentals here and am comfortable with this area. I may go into some surrounding areas too, depending on the opportunities that may come up. 

Originally posted by @Kyle Godbout :

I will be investing in Omaha, to start with. I have some rentals here and am comfortable with this area. I may go into some surrounding areas too, depending on the opportunities that may come up. 

 Don't choose the market you invest in because you know the area.  That is NOT enough of a reason.  I'm not saying invest in areas you don't know, what I'm saying is to find markets that work for your own financial return requirements.  Then, become an expert in that market, and then invest in that market.

Unless you have an unlimited supply of time and funds, don't waste you time and money in an area that won't work.  All that does is slow you down, and quite possibly stop you dead in the water...with no chance to move forward since the are you are investing in won't allow for the reuse of funds.

Also, never invest in opportunities.  I refer to them as "shiny objects of distraction", because they tend to be more speculative than true investments.

1 - Make a plan based on what you have, and need.
2 - Find markets that match your plan criteria/profiles
3 - Stay on track with your plan
4 - Have fun

You will be amazed at how fast...and easy, all of this can be.