What would an investing veteran do with $50k...
$50K sounds like a great place to start, right? Well, my challenge is ever the same. I own my business and our revenue swings pretty insanely from year to year making conventional financing impossible. I was even denied a home equity loan recently with more cash on hand than the loan amount because of the lack of consistent income. So, my $50k and a high credit score are my only assets.
I've sent yellow letters and will continue to market seeking out seller financing opportunities. This is easily my best way forward. I am in the Tampa area, which is a top-ten market for flips, but also highly competitive. That makes it hard to find a seller who doesn't want to cash out when they know there's another investor right around the corner.
I am a good negotiator and can handle myself very well in meetings and presentations. I've considered going straight into commercial real estate because of this strength and my corporate background.
I am 100% committed but I am feeling discouraged about my decision to focus on flips. Please let me know your thoughts on the below questions:
1. How would you put your $50K to work within the next 30 days?
2. Knowing that I want to get to a point, eventually, of $10K a month in passive income, would you bother trying to build capital in flips or dive straight into rentals knowing that would likely require partners?
3. If you started with residential properties and had it to do all over again, would you have started with larger unit counts and commercial lending?
Thanks for any input from the BP network. I truly appreciate everyone's thoughts and feedback.