$50,000 in cash...What to do?

$50,000 in cash...What to do?

Wholesaler · Pine, AZ · Member since 2014 · 40 posts · 6 votes

I was planning on beginning my career with FNF using my 401K savings by using a ROBS with Benetrend.

However, I found out my plan won't allow that....so I have $50,000 in cash and need some guidance how I can start?

I don't know who to contact, but I live in Phoenix area and am thinking to start with a condo but will need some financing.

Just sold my primary residence so no debt, good credit and will be living in my condo which I own free and clear.

Looking for advice......

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Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
11y

my first suggestion would be stop advertising you have X amount of $$$ publicly. 

Determine what you want to do, then research based on your wants and needs without the $$$ being a publicly made fact. 

Snakes will come out of the woodwork if they smell someone with $$$ and not sure what to do with it. 

Consider re-asking the question: where is your investing dollars getting the best bang here in Phoenix etc.... No mention of $$$

In the meantime, connect with a lender, interview realtors and look to get referrals to financial planners, tax/estate planners. Leave the fact that you have X$$$ out of the equation either initially or all together. We're all humans, the responses you get will vary if people know this about you. It will go from serving you to serving themselves. 

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  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    11y

    Probably the first people to contact would be a mortgage broker about lending possibilities and a real estate agent about finding a property. Or, you can try to find one through another more investment-minded method like mailings, in which case YellowLetters.com is a good place to start.

  • Real Estate Investor · Bakersfield, CA · Member since 2015 · 21 posts · 9 votes
    11y

    Marketing always helps to find properties. 

  • Real Estate Transaction Engineer · Jacksonville, FL · Member since 2014 · 271 posts · 74 votes
    11y

    Do condos move in Phoenix? 

    You might want to consider the market before buying. Check the HOA rules and fees, too.

    Aren't there any SFH that fit your budget? I know that Phoenix was hit hard back in the day and you might find some deals in talking with bank's asset managers.

    Since you have good credit and no other homes, except the condo, they might lend you what you need to purchase. You might have to talk to another lender for rehab costs. I don't know if the bank will add that to any LOC. Or use your $50K for rehab costs and get a LOC for the purchase. Make sure you have enough cash on hand for closing, fees, and holding costs.

  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    11y

    You first need to find your market...and the answer isn't Phoenix...because that's where I live...and I know it really well.  If you are in a market that doesn't work, you can't force it.  Of you know that market really well, that knowledge should tell you "not to invets there".

    Findthe market where $50k will work.

  • Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
    11y

    @Joe Villeneuve Please elaborate. There is a ton of competition in Phoenix, but that is because the market does work. We have a lot of people making a lot of money out here, myself included.

  • Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    11y

    @Clary Roberts

    Do you have $50K in cash in your 401k or personal bank account?

  • Wholesaler · Pine, AZ · Member since 2014 · 40 posts · 6 votes
    11y

    @ Mark Nolan

    $50,000+ in cash

  • Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
    11y

    my first suggestion would be stop advertising you have X amount of $$$ publicly. 

    Determine what you want to do, then research based on your wants and needs without the $$$ being a publicly made fact. 

    Snakes will come out of the woodwork if they smell someone with $$$ and not sure what to do with it. 

    Consider re-asking the question: where is your investing dollars getting the best bang here in Phoenix etc.... No mention of $$$

    In the meantime, connect with a lender, interview realtors and look to get referrals to financial planners, tax/estate planners. Leave the fact that you have X$$$ out of the equation either initially or all together. We're all humans, the responses you get will vary if people know this about you. It will go from serving you to serving themselves. 

  • Investor · Noblesville, IN · Member since 2014 · 35 posts · 10 votes
    11y

    Are you open to out of state flips and rentals?

  • Lender · Miami, FL · Member since 2015 · 134 posts · 5 votes
    11y

    That could get you preapproved for a line if credit of $250,000 plus. That way whenever your ready to invest you can draw down on it and close quickly instead of waiting weeks or more

  • Toronto, Ontario · Member since 2014 · 615 posts · 172 votes
    11y

    I will suggest you decide/detremine what you really want in REI first. Then do some market research to determine which market works ( not necessarily where you live- out of state/remote investing through (true) turnkey provider is an option)

    My 1 cent.

    Happy investing!

  • Rental Property Investor · Cape Coral, FL · Member since 2012 · 427 posts · 186 votes
    11y
    Originally posted by @Josiah W.:

    That could get you preapproved for a line if credit of $250,000 plus. That way whenever your ready to invest you can draw down on it and close quickly instead of waiting weeks or more

     Explain more?

  • Lender · Miami, FL · Member since 2015 · 134 posts · 5 votes
    11y
    Originally posted by @Jordan Williamson:
    Originally posted by @Josiah W.:

    That could get you preapproved for a line if credit of $250,000 plus. That way whenever your ready to invest you can draw down on it and close quickly instead of waiting weeks or more

     Explain more?

     He if the borrower has at least 50k liquid in bank account, ira, 401k or any type of investment account I can get him preapproved for a line of credit for five times the amount he has. That way whenever he finds a good deal that he needs to close asap on he will have the funds available with waiting two, three weeks to close and potentially losing the deal

  • Rental Property Investor · Cape Coral, FL · Member since 2012 · 427 posts · 186 votes
    11y
    Originally posted by @Josiah W.:
    Originally posted by @Jordan Williamson:
    Originally posted by @Josiah W.:

    That could get you preapproved for a line if credit of $250,000 plus. That way whenever your ready to invest you can draw down on it and close quickly instead of waiting weeks or more

     Explain more?

     He if the borrower has at least 50k liquid in bank account, ira, 401k or any type of investment account I can get him preapproved for a line of credit for five times the amount he has. That way whenever he finds a good deal that he needs to close asap on he will have the funds available with waiting two, three weeks to close and potentially losing the deal

    I have all of the above... are you telling me you think you can get me a LOC of 5 times whatever liquid cash and investment accounts I have? What is it based on? Sounds too good to be true to me

  • Lender · Miami, FL · Member since 2015 · 134 posts · 5 votes
    11y
    Originally posted by @Jordan Williamson:
    Originally posted by @Josiah W.:

    That could get you preapproved for a line if credit of $250,000 plus. That way whenever your ready to invest you can draw down on it and close quickly instead of waiting weeks or more

     Explain more?

     He if the borrower has at least 50k liquid in bank account, ira, 401k or any type of investment account I can get him preapproved for a line of credit for five times the amount. That way whenever he finds a good deal that he needs to close asap on he will have the funds available with waiting two, three weeks to close and potentially losing the deal

    Yes i can. Requirements: 1. must have proof of at least two previous deals in experience back by hud statements. 2.630 fico score 3. Liquid capital

  • Developer · San Diego, CA · Member since 2015 · 1k+ posts · 1k+ votes
    11y
    Cj W. No way. No one's going to provide an LOC of 5x based on someone's 401k account balance.
  • Carl FischerPro Member
    Rental Property Investor · Ambler, PA · Member since 2015 · 2k+ posts · 1k+ votes
    11y

    It should be easy to get a HELOC on the free and clear condo as well. Education and experience is key as suggested by the posts. Do more homework, understand your goals, and come back with a deal and you may get more definite suggestions at that point. Good luck.

  • Real Estate Agent · Yuma, AZ · Member since 2015 · 56 posts · 16 votes
    11y
    Have you considered Yuma? I know of an owner financed condo in a very good very well established area that needs no work and has ten months left in a current good lease, message me for details if you're interested.
  • Flushing, NY · Member since 2013 · 221 posts · 29 votes
    11y
    Originally posted by @Robert McDonnell:
    Have you considered Yuma? I know of an owner financed condo in a very good very well established area that needs no work and has ten months left in a current good lease, message me for details if you're interested.

     Send me info on that deal. Sounds interesting.

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