Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
What to do with $15K??? I have been mailing letters going on 2 years attempting to wholesale and 0 deals to show for it. I have been funding this with my paycheck from my full time job. I am about to come into $15,000 and would hate to use all of it attempting to wholesale with nothing to show for it. Any words of advice BP? I would greatly appreciate it. My long term goal will be to acquire rental income properties in order to retire from my full time job and enjoy my later years (I will be 45 this year-ugh!) with my beautiful bride, my awesome kids and my grandchild who is on the way!
Tampa, FL · Member since 2013 · 36 posts · 15 votes
9y
Jorge,
If you haven't gotten a deal yet, your marketing or negotiation tactics need adjustment. Send me a pm if you'd like to go over what you're doing together on the phone.
San Bernardino County, CA · Member since 2016 · 12 posts · 14 votes
9y
Why not look for an FHA or 203k FHA multi-unit deal for your first deal with the 15k? Of course that would depend on your current income and living situation. What city are you located in?
Tampa, FL · Member since 2013 · 36 posts · 15 votes
9y
Jorge,
If you haven't gotten a deal yet, your marketing or negotiation tactics need adjustment. Send me a pm if you'd like to go over what you're doing together on the phone.
San Bernardino County, CA · Member since 2016 · 12 posts · 14 votes
9y
What are you willing to do with 15k? If not FHA, remaining choices I can think of: low cost condo investing, partnerships, continue wholesaling, or continue to save until you get 25% (have a measurable length of time as your goal and stick to it). You already know, LA ain't easy with 15k. Determine if you are willing to go out of LA and if so, how far out?
Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
9y
@Richard Duong Thank you. I am well aware that with $15K it is pretty impossible to do anything, that is why I was asking to see if anyone had some creative ideas. I think my best bet is to make it grow in order to invest in something that will make it grow all the more. If anyone out there has any ideas I'm all ears.
Real Estate Agent · Kennesaw, GA · Member since 2015 · 307 posts · 153 votes
9y
Do you know anyone who is investing and doing well? If so you could consider small private loan at 10% secured by something. I did this and now get $150/mo set up automatic. The loan is secured by vacant land. It's not much but it could even get you some insight into what the borrower is doing in RE. It is risky if it is your only $15k and 15k is hard to come by for you. But for me it was extra money that was not doing anything. That same investor later turned me on to a deal that will make me $20k.
Wholesaler · Philadelphia, PA · Member since 2016 · 35 posts · 20 votes
9y
Hi Jorge! Don't take this wrong way but something isn't quite right if you're intense marketing for 2 years with absolutely no bites. Even cold calling Craigslist with the correct conversation should have resulted in something. It is a pure number game and if you have made hundreds of offers something should have landed. I would say start reviewing some of the bigger pockets podcast and forums on marketing and conversation training to get a little better at it.
For a more specific answer I would say look to wholesale in a different area. Or if your credit is good $15k is enough to actually put a down payment on properties in other areas of your state or local states. You could also partner and find someone else at a local REI club who may also only have $15 and partner network network network! You could meet some other wholesalers in your area and help them find buyers for a share of the fee. Or you could find an out of state turnkey investor that has deals with low buy ins. Sometimes owner financed.
@Arthur Lyons I have not been mailing thousands of letters a month. I've been funding my mailing campaign with my full time job. I have gotten a handful of bites but that is about it. I have also attempted to partner with others in attempts to share the fees. The problem with this though is that I talk to individuals who say they have it under contract only to find out they don't and their fees on top of other people's fees and my fees makes the deal look so unattractive to buyers.
I am really leaning out of state...any advice on how to accomplish this? Anybody out there buying turn key rental investments?
Laveen, AZ · Member since 2016 · 584 posts · 528 votes
9y
@Account Closed
Do you absolutely have to stay in the LA area...or SoCal for that matter? If not...MOVE. You could potentially house hack a MFR as an owner occupant and have some change left over.
If you must remain in LA: I'll cosign what everybody else is saying, invest out of state where 15k is enough down payment for an investment property. And you don't even have to go that far out, AZ and NV may should have properties in your price range.
Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
9y
@Rodney Sums For now I plan on staying in LA especially with my first grandchild on the way my wife and I would love to be around for that. Like I mentioned in my last post I would am strongly considering out of state. I would appreciate any help in how to go about that. Thanks.
Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
9y
Originally posted by @Account Closed:
What to do with $15K??? I have been mailing letters going on 2 years attempting to wholesale and 0 deals to show for it. I have been funding this with my paycheck from my full time job. I am about to come into $15,000 and would hate to use all of it attempting to wholesale with nothing to show for it. Any words of advice BP? I would greatly appreciate it. My long term goal will be to acquire rental income properties in order to retire from my full time job and enjoy my later years (I will be 45 this year-ugh!) with my beautiful bride, my awesome kids and my grandchild who is on the way!
Are you looking into buying and holding? If so you can use it towards a down payment?
Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
9y
@Tom Ott I would like to flip a number of properties first in order to build capital in hopes of being able to buy 2-3 multi- family properties and go from there. Perhaps Refinance and then go for more. What's your take on those thoughts?
Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
9y
Originally posted by @Account Closed:
@Tom Ott I would like to flip a number of properties first in order to build capital in hopes of being able to buy 2-3 multi- family properties and go from there. Perhaps Refinance and then go for more. What's your take on those thoughts?
Flipping would be good. What markets do you think you might want to go into? Also, mutil families can be a gable, it just depends on the area of what the numbers. Sometimes they are a money pit.
Wholesaler · Philadelphia, PA · Member since 2016 · 35 posts · 20 votes
9y
I have a property that is wrapping up a full rehab that i would sell, brand new everything from roof to basement (not finished). Appraised value should come in at $85k when done. I'd sell it for ehh $70. Rents $950-1100 depending On if you do section 8 (gets higher). My property manager could sell you property, rent it out and everything send you checks. You should be able to get a loan with $15k down.
Laveen, AZ · Member since 2016 · 584 posts · 528 votes
9y
@Account Closed for starters, you have any friends and family that live in cheaper areas? You can start there so they can tell you about the areas. Then you can browse listings to get a feel for what your money buys
Investor · Albany, NY · Member since 2017 · 58 posts · 22 votes
9y
Jorge Ruiz I live in NY so I feel your pain on inflated RE. I would consider house hacking/live and flips with a FHA loan with additional 203(k) loan for rehab. Other option is out of state with possible turnkey property management assistance. However, I've seen a few turnkey options to be very capital heavy.
Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
9y
@Tom Ott I wouldn't flip multi families. I would buy and hold those if that's what you meant. I would flip sfr properties. I was thinking Memphis, Cleveland, and perhaps southern Illinois suburbs.
Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes
9y
@Account Closed..Consider Alabama..$50,000 gets you a move in ready property..20% down, and $,5,000 reserve...Turn key options work too...Keep an open mind....GL
Investor · Atlanta, GA · Member since 2016 · 241 posts · 86 votes
9y
You could also lease option properties the sub lease it to someone else to get your money back and do it again. You will build cash flow and equity therefore putting yourself in a better position to quit your job if you want to.