What to do with $15K

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!

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Johnny Diamantas

Tampa, FL · Member since 2013 · 36 posts · 15 votes

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.

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Brian C.
Investor · Aptos, CA · Member since 2015 · 87 posts · 38 votes
9y
@Account Closed With 15k you might try checking the county delinquent tax sales around s.cal..you might be able to buy and flip a tax deed property with that...but make sure you do your due diligence with those!
1 Reply
Jennifer Slaughter
Real Estate Agent · Fort Collins, CO · Member since 2016 · 246 posts · 142 votes
9y
with 15k you should buy an out of state turnkey rental property where the cost of entry is much lower than SoCal. You can get great cash on cash returns and save cash flow for another down payment, especially since you said you want to retire with real estate. I like Memphis and I would recommend @james wachob
3 Reply
Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
9y
Originally posted by @Rolanda Eldridge:

@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
If someone buys a $50k home it would be $10k down payment but then there will also be about $4-$5k in closing cost total. There would be nothing left over and would be in most likely a low income high risk area.
My suggestion would be to save up another $10k to buy in a better area within whatever market you select
Curt Davis - KAIZEN Realty538 Reviews
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Rolanda Eldridge
Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes
9y
@Curt Davis.. You can find $30,000-$50,000 or less in my market in a working class neighborhood. Rents $700-$850 depending on the property. Affordable homes make money too. There's also a shortage. I open rentals to Sect 8 as well. Risk is involved in every RE transaction. Low risk/ high risk ...is Risk. Each investor must determine what arena works. I'm flexible while maintaining an open mind.. Happy Investing
2 Reply
Rick SteinPro Member
Investor · Austin, TX · Member since 2014 · 248 posts · 181 votes
9y
How many letters have you sent out? If you are sending out a massive amount on a consistent level and not getting any results, there is a problem. Why do you have nothing to show for it? Have you gotten responses? What are you saying to them? I don't have enough information to comment.
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Kyle Ransom
Investor · Atlanta, GA · Member since 2016 · 241 posts · 86 votes
9y
You can also wholesale properties as well since you have money for earnest money to lock up contracts. If you go this route make connections with buyers who can close fast first. Find out what they want and go find them deals. This is what I do. I established relationships with corporate buyers who have the cash to buy multiple deals and I just funnels deal to them. The benefit of working with corporate buyers in that they can close fast so that when you offer to buyer a property with a fast close it will give you the advantage and get more deals.
If you have a deal where to can make 15K or more to can even do a double close. For deals where you make less than $15k I would suggest that you assign the contract. Do five or more deals and you will make enough money to start buying your own deals.
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Serena Ocenas
Real Estate Professional · Chicago, IL · Member since 2015 · 91 posts · 16 votes
9y
Jorge Ruiz I'm in need of a gap funder. Please PM if interested. Great return!
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Gary NelsonBusiness Member
Real Estate Agent · Branson, MO · Member since 2016 · 141 posts · 93 votes
9y
@Account Closed Pay down debts... Guaranteed ROI!
[email protected]417-464-6915
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Account Closed
OP
Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
9y
@Kyle Ransom I've heard of that strategy but not quite sure how it works.
@Rick Stein I am funding my mailing campaign with my full time job so I send out approximately 100 letters a month. I have gotten a few responses and just yesterday I had a lady call me. See my other post on a foreclosure in Los Angeles.
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Account Closed
OP
Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
9y
@James Wise Thank you for your input. From what I hear Cleveland is pretty hot area to invest in. If you wouldn't mind sending me a PM and filling me in on why one would like to invest there I would greatly appreciate it.
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Rae Remer
Real Estate Agent · Atlanta, GA · Member since 2013 · 44 posts · 4 votes
9y
Kyle Ransom I'm looking to work with you in Atlanta
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Shiloh LundahlPro Member
Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
9y
@Account Closed Here are some ideas that you may want to try if you don't have a lot to invest starting out. If you have decent credit, you should be getting balance transfer credit card offers in the mail. If not, google it, you will find many. Applying for 2 of them with a limit of 20k each for home repairs shouldn't be too difficult to secure. Take 15k off each card in the form of a check - pay 3% fee, roughly $900 to use their 30k for 12-18 months. Then go to a REI meeting and do what @Arthur Lyons suggested and NETWORK, NETWORK, NETWORK with other investors who are flipping currently and ask to hear about their deals and possibly go see one or two. Then select a flipper in your area that has a good track record ask him or her if you could be a money partner on a deal where you would come in with 45k to help with the rehab on a deal in exchange for 10% on your money while in the deal and to learn how they found the deal and built their real estate team. This strategy should give you 1) experience, 2) interest earned on your money, and 3) credibility (you could take pictures of before and after the rehab and share with others that you participated in the deal in order to gain credibility).
IMPORTANT NOTE: It is important to make sure you have enough money to make payments on the cards on time and to get a deed of trust on the house to secure your position in the property.
Hopefully this suggestion is helpful. Good luck. Let us know how it goes.
480-206-1209 Podcast Guest on Show #287
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James WachobBusiness Member
Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 887 votes
9y
@Account ClosedThe key is to find a great team! Ideally you would find a company that has everything under one roof. Acquisitions team, renovation crews (fully licensed and insured), Property Mgmt., and a Real Estate Investment Brokerage in case you ever decide to sell.
By teaming up with a solid firm you can mitigate your risk and have some "boots on the ground" that have your best interest in mind.
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Rick SteinPro Member
Investor · Austin, TX · Member since 2014 · 248 posts · 181 votes
9y
Jorge,
If you can find a property that involves long term seller financing at an attractive interest rate, you then not only have an attractive property, but also attractive financing to assign. The financing can be equally as important, if not more important than the brick and mortar. For example, lets say you can negotiate 10% down with a long term note at 4%. This would be very inticing to another investor.
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Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
9y
15k is enough for marketing and can go a long way if used correctly.
2 Reply
Christopher Reid
Real Estate Agent · Stamford, CT · Member since 2016 · 81 posts · 43 votes
9y
@James Wise i got a chuckle out of this: "Real estate agents are what wholesalers strive to be (even if they don't know it)" so thanks for that
Your other comment scared me though. Would you really recommend new agents working with you to budget $15k for marketing!?!?!?! I'm going to have a license in hand here in a few weeks, and have no intention of spending anywhere near that kind of cash for marketing.
@Account Closed how aggressively have you been pursing your mail marketing campaign? 2 years and no results must be extremely frustrating.
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Todd Douglas
Realtor · Detroit, MI · Member since 2017 · 184 posts · 33 votes
9y
@Account Closed With 15k, you can find a market like Detroit, or some parts in OH to buy a property fix and flip or rent out and hold. Or offer Seller's Financing and get some of your finds back from the down payment
1 Reply
Brett Goldsmith
Investor · Los Angeles, CA · Member since 2012 · 1k+ posts · 500 votes
9y
DP on a rental property out of state and set up a website or squeeze page with a small google PPC campaign.
1 Reply
Sam Shueh
Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
9y
Not enough to do anything. Suggest you to add more savings.... Can not even pay for a new car with that funds....
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Account Closed
OP
Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
9y
@Sam Shueh depends what kind of car... thanks for your optimism.
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Account Closed
OP
Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
9y
@Brett Goldsmith thanks for your input and thanks for taking my call the other day.
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William BrownPro Member
Wholesaler · Los Angeles, CA · Member since 2016 · 276 posts · 181 votes
9y
If it's been 2 years and the money you are pouring into direct mail campaigns isn't working... change your strategy or change to something else completely. 15k can go a long way on a down payment, but not in los angelos. It's nearly impossible for an investor to start out in a market such as that. Maybe start looking into other markets or different strategies?
[email protected]310-919-0587 Podcast Guest on Show #371
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Account Closed
OP
Contractor · Los Angeles, CA · Member since 2015 · 887 posts · 323 votes
9y
@William Brown thanks. I'm strongly considering out of state. Finding my campaign with my job does not allow me to mail thousands of letters a month.
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Donny Widjaja
Investor · Pflugerville, TX · Member since 2014 · 79 posts · 22 votes
9y
I am investing some money with Holdfolio and they will try to give at least 8% return.
1 Reply
Robert Molloy
Investor · Connersville, IN · Member since 2014 · 28 posts · 4 votes
9y
2 years and no deals? Good on you for keeping at it! Maybe find someone you can team up with local who IS getting the results you're after...offer to pay for the marketing in exchange for some mentoring or something then split the deals.
No more going it alone, man.
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