Hi, I have spent the last 11 years in the auto industry with Mercedes-Benz and just took a leap out into real estate.
I just filed BK to start fresh from all the debt I swamped myself with being in the rat race with the "joneses"
I am coming into about 80k cash next month. I want to start my portfolio of multifamily housing rentals. I have a wholesaler that is starting to send me properties to look over. I am in over my head thus far but thanks to all of you I am learning quickly.
Any suggestions on what to do and how to get moving? I know this is a broad question but all your replies I am sure will be extremely helpful.
@Jeffery Glavin so first step I would suggest is to stick that money in a bank account at a different bank than you typically use, and then don’t touch it. Or put it in a CD with a 1-2 year lock time so you can’t use it at all.
Point is put it somewhere you won’t use it. Alright so now during this time you learn everything there is to know about personal finance and then real estate. You’ll likely want to do this anyways as your recent BK will make it difficult to get conventional lending.
Clearly you took on a lot of debt before and that didn’t end well, so I would recommend pursuing a different strategy besides real estate that doesn’t require debt OR buy houses in cash.
This probably isn’t what you want to hear but that’s what I think would be best, at least for a couple years
@Caleb Heimsoth , Thank you for the idea. I went bk on purpose to let go of the unnecessary things that would just keep me down from really making an impact on my future in real estate. I am serious about getting a just start with this and being set in the next 10 years. I want something to bring me more returns then 2-3%. If I wanted to take 2-3% I could have stayed working in the auto business and put that in bonds.
I believe there are much better options that can yield 20-50% returns on the market with the right research. Listening to BP podcasts and reading the forums I am sure we can come up with something.
@Jeffery Glavin well yes getting those returns would be nice but again you saying “I declared BK on purpose..” really shows I don’t think you have a full understanding of personal finance and/or investing basics.
I don’t mean this as an insult, just a dose of reality. Declaring BK will mess up your credit for several years at least. This will make real estate much more difficult. So with that being said I again refer you to my first comment.
All the best.
Put the money away and take a year to get educated. Obviously you need to learn about real estate investing but also financial management. You are looking at starting a business with a 95% failure rate so take it easy. Real estate is a slow long term game plan to build wealth.
First thing you need to do is get established in a good paying job and build your credit score back up. To succeeed you must first reposition yourself financially.