How to make 30k work for me

Question

Just wanted to get some ideas from people; so utilizing the "other people's money" technique I applied for a 30k loan and was approved at 8.99 apr. I have done this last year where I was lucky enough to score a townhouse that was in foreclosure but nothing of value is on the MLS in Tucson. So basically just wondering how I should make this money work for me and if not just leave it alone( I have not accepted the loan yet). Was really looking forward to fix and flip but I think I need more cash to make that happen but who knows I'm a newbie.

Joe Villeneuve · Answer

Interest rate is immaterial if you use this money and don't spend it. Don't think if it as "flipping houses", think of it as "flipping your cash". All you need to do is put it into an investment that comes out in a short period...with friends ($$$$), then put it (and the friends) back in again, and keep repeating this. You are not spending the money this way, you are using it.

Multiple uses, but a one time cost, makes the interest rate a non-factor...so long as the first investment covers the expense of its use.

Antoine V. · Answer

Guess I should have added a little more info. The last time I took a loan out like this I used it to  brrrr so the loan was paid back within a couple months.

Aaron K. · Answer

As other's have said your interest rate is basically too high to do anything besides flipping.  If flipping hard money lenders might be the people you want to talk to about requirements and standards.

Andrew B. · Answer

That's a really high interest rate, and you don't have a lot of cash. With only $30k you are unlikely to make anything work unless you set up a very unique deal or partner with someone. Even if you figured something out, you have no money if something goes wrong. I would suggest saving up some money before you dive into real estate. From my understanding, the other people's money approach is usually reserved for those who are experienced and are trusted with other's money, or people who have money and just refinance it back out of all the properties they buy. Using other people's money is not a great technique for beginners.

How to make 30k work for me

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