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Tom Feret
  • Flipper/Rehabber
  • Dallas, TX
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If you had $__k to invest per month

Tom Feret
  • Flipper/Rehabber
  • Dallas, TX
Posted May 10 2016, 04:04

I suppose the first thing should be to outline that this would apply to an investor looking to invest in residential real estate, and of course that it will vary dependent on each specific market. Curious to hear how everyone thinks the use of certain monthly increments could be best utilized in building a successful portfolio:

  • $1k
  • $2.5k
  • $5k
  • $10k
  • $25k+

Naturally this could include holding on to the monthly amount and saving it for an upcoming use (down payment, HML, etc). I'll provide what I think could be viable uses of these sums and looking forward to hearing everyone's input.

  • $1k - Investing in "yourself" (education, courses, mentors, coaching); marketing
  • $2.5k - as above; Rolling it into an upcoming down payment; partnering
  • $5k - as above; entry point for a down payment(?)
  • $10k - as above, strategic investing based on criteria
  • $25k+ - as above, rolling into potential HML

Let me know which obvious things I'm missing and also really interested in seeing how you would (or did!) progress through these increments.

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Joe Splitrock
Pro Member
  • Rental Property Investor
  • Sioux Falls, SD
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Joe Splitrock
Pro Member
  • Rental Property Investor
  • Sioux Falls, SD
ModeratorReplied May 10 2016, 07:21

@Tom Feret my asnwer is simple. There is no better education than real world, so all the money should go to buying properties. The more cash you have the faster you can buy them...

  • $1k - saving for down payment
  • $2.5k - saving for down payment
  • $5k - saving for down payment
  • $10k - down payment
  • $25k+ - down payment or maybe just save up and pay cash for properties

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Alexander Felice
  • Guy with Great Hair
  • Fayetteville, NC
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Alexander Felice
  • Guy with Great Hair
  • Fayetteville, NC
Replied May 10 2016, 07:29

I save as much as possible each month and live as poor as possible. Keep stacking cash and when deals come around you can jump on them.

You don't really need to save for a specific goal other than, maximize your on-hand liquidity. As you build cash, the pool of opportunity opens widely.

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Andy Robison
  • Investor
  • Kansas City, MO
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Andy Robison
  • Investor
  • Kansas City, MO
Replied May 10 2016, 07:31

EZPZ

  • $0- Investing in yourself, Education is free BP and libraries, maybe $10 for a REI group.
  • $1k - Saving
  • $2.5k - Saving
  • $5k - Saving
  • $10k - Down Payment/Saving/buying more property.
  • $25k+.... Beaches out in some far away land being served martini's on the beach.

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Jassem A.
  • Investor
  • Pennsylvania
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Jassem A.
  • Investor
  • Pennsylvania
Replied May 10 2016, 07:35
  • $1k - save cash for home in D area to rent out and fix yourself
  • $2.5k - save cash for home in C area to rent out and do most of the work yourself
  • $5k - save cash for home in C area to rent out and do some of the work yourself
  • $10k -save cash for home in B area to rent out and subcontract the work
  • $25k+ - save cash for home(s) in B area to rent out and hire a general contractor to do the work

Optionally borrow against homes to buy more

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Justin Fox
  • Software Developer
  • Vidor, TX
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Justin Fox
  • Software Developer
  • Vidor, TX
Replied May 10 2016, 07:44
  • $1k - saving for real estate investment
  • $2.5k - saving for real estate investment
  • $5K - saving for real estate investmet
  • $10k - retire.

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Tom Feret
  • Flipper/Rehabber
  • Dallas, TX
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Tom Feret
  • Flipper/Rehabber
  • Dallas, TX
Replied May 10 2016, 15:26

Thanks @Joe Splitrock, @Alexander Felice, @Andy Robison, @Jassem A. and @Justin Fox for the input!
It seems the overwhelming consensus is saving for an investment/down payment, with increased liquidity leading to more opportunities.

Andy, great addition of the $0 benchmark and your $25k+ recommendation I'm sure resonates with a few ;)