Property Selling, What Now?

Question

I have accepted an offer and am on my way to selling my first real estate property. I should be profiting roughly $30k. $20k less than originally anticipated but I'm happy it's about to be behind me. My question now is when should I be looking for my next investment? After the home has sold or before? I am looking to doing some wholesale deals to build Capital quickly. Should I be using my profits to fund wholesale property? Or should I be using OPM? Just looking for a little direction because I eventually want to do this full time.

Jeff Mobley · Answer

1st off, BIG Time Congrats. Also, always be looking for the next deal, even before you finish the one you are on especially since you want this full time. I would also advise leveraging your money on several deals as opposed to just one. You've done your 1st flip and are on your way to building that much needed cash reserve. You've got experience and cash now. Hard money lenders ad private investors are a great way to go. Just make sure you use the 70% rule, then deduct for repairs and roll as much interest pmts. and points into the loan as possible. Do it man. Congrats again and keep it going!...all the best.

Cynthia Calhoun · Answer

Hi Allen,

My advice would be to use OPM if/when it makes fiscal sense...and whenever possible; based on ROI v/s DTV. My philosophy is it "almost always" makes sense... Of course the ROI on your $$ must be more than your cost to borrow. That's a pretty loose formula, but it usually works for me. In other words...if it costs you too much to use OPM, then if/when possible, use your own funds. That's a better use of resources.

Allen Lucas · Answer

Why don't I want to use OPM?

Gordon Cuffe · Answer

start looking now. It usually takes awhile to find  a good deal. Use your profits for marketing and funding your next deals.