Real Estate Agent · Tampa, FL · Member since 2009 · 456 posts · 123 votes
What should I do with it?? Suggestions? Advice? I want to do something that will allow me to grow it into more so that I can either make a down payment on a house for myself or have enough cash to get a hard money loan for a first real estate investment deal. I thought about investing in tax liens, or buying gold, or possibly buying notes... what do you guys think? Do you have any alternative suggestions? Thanks!!
ps I feel retarded for putting "advise" in the title but it won't let me change that now
Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
16y
Corey,
I think your main problem is your location, with $10k in hands you have nothing for buying any house or so in New York City.
So only advice I can give, change location ;).
Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
16y
Corey,
I think your main problem is your location, with $10k in hands you have nothing for buying any house or so in New York City.
So only advice I can give, change location ;).
Real Estate Investor · PA · Member since 2009 · 14 posts · 4 votes
16y
Hi Corey,
There could be many options for investing $10K, and I am sure you'll get many suggestions from those more experienced than me. Here is one suggestion: I am in the middle of a deal right now and need an additional $10K to get to closing, and will pay $500 per month for the privilege of using that $10K. I own other property that will secure the loan, and will repay teh principal in 90 days. I would love to hear from you and give you all the details.
Wholesaler · Amarillo, TX · Member since 2008 · 369 posts · 75 votes
16y
Well you could buy a list and send out some mailers. Then, put a good deal under contract and double close. You don't really go around telling people you are a wholesaler. If you have an awesome deal, which you should as a wholesaler, then you can call your buyers and they'll snatch it right up! When you double close the only thing the buyer will know is that you own a property and they are buying it from you.
(have a title search done before you drag an investor into an ugly mess)
Wholesaling does require time and knowledge. If you don't really have the time or knowledge to do it then I would advise against it or anything else for that matter.
If you are looking for passive income then I would pick a strategy and become educated with it then invest in that area.
You could also buy turn-key(ish) properties at a deep discount using long term hard money then sell it by offering seller financing and doing a wrap. repeat..
The passive income strategies to consider would be notes, rentals, seller financing, hard money lending, and stocks/commodities as you mentioned before. Just pick one and master it!
Gold is HOT right now but it won't be forever. You may want to consider opening a WE BUY GOLD store then reinvesting your profits into rentals.
You may also want to look into Berkshire Hathaway B stocks as they are the best performing stocks over long-term. (aside from BRK A)
Real Estate Investor · North Carolina · Member since 2008 · 1k+ posts · 483 votes
16y
Corey, you asked a great question. RE isn't the only way to make money and $10K may not go all that far in this arena, especially since you don't want to risk LOSING it all on one bad deal.
In NC the state sells all its surplus property at auction. How about where you're at? Here they sell all kinds of great stuff. I've only dealt with vehicles but I've had profitable fun 'wholesaling' a couple ex-highway patrol cars.
And NC also auctions off property seized in drug-related crimes. Boats, planes, shiney bling and so forth. I happen to like the wholesale Harleys that appear regularly.
In today's economy your cash should speak very loudly in the right market. Choose an overlooked niche, learn more than the competition and you should do very well.
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
16y
Want the truth? You haven't done your first deal yet. The best way is to do a deal that you screw up on and lose it.
It will piss you off into making the 10 grand back. Then you'll have figured out your way of making 10 grand at a time at something. It could be flipping houses, flipping cars or starting an REO cleanout company that charges to do the cleanout and sells the stuff you find on e-bay.
The answer is not "real estate" so much as it is what you do with the opportunities available to you. A properly placed New York hotdog stand will cashflow better than a New York rental property.
Investor · Mableton, GA · Member since 2009 · 1k+ posts · 465 votes
16y
NO! Don't screw up your first deal! You can screw your second one, but don't jeopardize the first one cause you will feel defeated and it will shake your self confidence.
Don't rush! Study whatever you invest in and whomever you are investing with!
Real Estate Investor · Amarillo, TX · Member since 2008 · 547 posts · 214 votes
16y
If your interested in making a hard money type loan id be very interested, have a property worth around 20K im getting into, got 10K on a short term loan need to pay off. looking for 24 month financing though!
-Scott
Real Estate Investor · Belvidere, IL · Member since 2009 · 169 posts · 65 votes
16y
Something to consider, try making money without spending your $10K first, other than perhaps marketing expenses, but keep them low, and once you have made money and can replicate your system, figure out how to use the $10K to supercharge your business. The problem with having money is that sometimes it is easier to spend it than to be creative.
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
16y
Originally posted by Eddie Ziv:
you will feel defeated and it will shake your self confidence.
You're gonna screw up at some point. That shouldn't impact your self confidence. Why not get it over with? Are you going to not ask out a beautiful woman because you might screw something up? Eddie, I know you and I have both screwed up in deals. I had a rental in Chicago and you have on in LA. Knowing what we know now about areas like Indiana and Alabama - those Chicago and LA rentals are screw ups.
It's better you screw up on your own dime first of all because you'll realize it's not so bad and you can recover and secondly because no one knows about it but you so you save yourself the fine experience of screwing up with someone else's money. :wink: You'll never make as much on your own money as you can on someone else's. Your own 10k is what you'll spend learning how to effectively invest other people's money.
Investor · Mableton, GA · Member since 2009 · 1k+ posts · 465 votes
16y
Originally posted by Tim Wieneke:
Originally posted by Eddie Ziv:
you will feel defeated and it will shake your self confidence.
You're gonna screw up at some point. That shouldn't impact your self confidence. Why not get it over with? Are you going to not ask out a beautiful woman because you might screw something up? Eddie, I know you and I have both screwed up in deals. I had a rental in Chicago and you have on in LA. Knowing what we know now about areas like Indiana and Alabama - those Chicago and LA rentals are screw ups.
It's better you screw up on your own dime first of all because you'll realize it's not so bad and you can recover and secondly because no one knows about it but you so you save yourself the fine experience of screwing up with someone else's money. :wink: You'll never make as much on your own money as you can on someone else's. Your own 10k is what you'll spend learning how to effectively invest other people's money.
Tim. I'm not against diving in and screw up. Screwing up is part of the learning curve. All I'm saying is that the first deal is not the one to make a risky move. I used to build computer as a hobby. ( I'm sure many went through this faze) I had my share of blowing up a CPU and frying a motherboard once but if it happened on my first try, I would have never tried again.
Real Estate Agent · Tampa, FL · Member since 2009 · 456 posts · 123 votes
16y
Originally posted by NC Mark:
Corey, you asked a great question. RE isn't the only way to make money and $10K may not go all that far in this arena, especially since you don't want to risk LOSING it all on one bad deal.
In NC the state sells all its surplus property at auction. How about where you're at? Here they sell all kinds of great stuff. I've only dealt with vehicles but I've had profitable fun 'wholesaling' a couple ex-highway patrol cars.
And NC also auctions off property seized in drug-related crimes. Boats, planes, shiney bling and so forth. I happen to like the wholesale Harleys that appear regularly.
In today's economy your cash should speak very loudly in the right market. Choose an overlooked niche, learn more than the competition and you should do very well.
Good luck and keep us posted.
I actually have thought about the car idea before so I am really intrigued by this answer. Can you give me more information about how this works? If you buy cars like that and resell them are you going to have to get some kind of used car dealer license? Do you have to warranty them and such?I know a lot of states now have laws where if you are a car "dealer" you need to warranty the cars you sell.
Investor · Chattanooga, TN · Member since 2009 · 1k+ posts · 903 votes
16y
Originally posted by Corey Demuth:
Originally posted by NC Mark:
Corey, you asked a great question. RE isn't the only way to make money and $10K may not go all that far in this arena, especially since you don't want to risk LOSING it all on one bad deal.
In NC the state sells all its surplus property at auction. How about where you're at? Here they sell all kinds of great stuff. I've only dealt with vehicles but I've had profitable fun 'wholesaling' a couple ex-highway patrol cars.
And NC also auctions off property seized in drug-related crimes. Boats, planes, shiney bling and so forth. I happen to like the wholesale Harleys that appear regularly.
In today's economy your cash should speak very loudly in the right market. Choose an overlooked niche, learn more than the competition and you should do very well.
Good luck and keep us posted.
I actually have thought about the car idea before so I am really intrigued by this answer. Can you give me more information about how this works? If you buy cars like that and resell them are you going to have to get some kind of used car dealer license? Do you have to warranty them and such?I know a lot of states now have laws where if you are a car "dealer" you need to warranty the cars you sell.
Most states would require you to get a dealer license but there are ways around that. I've researched and actually flipped a few cars and made some dough. The trick is to focus at the low end of the market. You can find cars that are 10+ years old but are in pretty decent shape for hundreds of dollars. You want pay cash and sell for cash. Also you own the cars for such a short time there is no need to transfer title into your name or insure them. Your investment is minimal ($300-$1,000) and the ROI is usually 50% and above per deal.
Govt auctions are different. You can't test drive any of the cars before bidding on them, although you are allowed to inspect them before the auction. When you buy at auction you have to put everything in your name on the spot. This leaves a paper trail that buying private party doesn't.
Real Estate Agent · Tampa, FL · Member since 2009 · 456 posts · 123 votes
16y
How do you park and let the buyer test drive the cars if they aren't registered? I'm assuming you mean that basically you buy the car, the owner takes his plates and gives you the title, you don't put the title in your name you just give it to the buyer when they buy the car from you. But how do you store it in the meantime and how does the buyer test drive it? I really appreciate your help
Real Estate Investor · North Carolina · Member since 2008 · 1k+ posts · 483 votes
16y
I had the title in my name, of course.
Were I doing this for any more than fun money I would seek out a Dealer's License.
Also Corey, have you tried yard sales and then posting the items on ebay to earn money?
My girlfriend used to do this and specialized in CLOTHING. She wasn't getting rich but made a fair wage for her efforts.
Another idea for you might be a consignment shop. You rent the entire building and then rent out individual spaces to other entrepreneurs. In these times it's booming where I'm at.
Real Estate Investor · Longmont, CO · Member since 2009 · 208 posts · 109 votes
16y
Do you already have good reserves of at least 6 months' living expenses, or is the 10k your life savings at the moment? Don't let greed make you gamble with your reserves is all I'm advising....in fact, I'd put some of those reserves in physically held precious metals for two reasons - they won't deflate, and it adds an extra obstacle to spending them foolishly.
There are owner-financed investment properties out there that make sense, the $10k could cover closing costs on a couple of those. There are also "Lonnie deals" being worked in mobile homes by many BP members, with good profits, for well under your $10k limit. Maybe not in your area though.
If you've decided that you want to invest long term in real estate, I don't see a reason to invest a lot of time in learning about flipping used cars or other unrelated transactions. Just keep networking, educating yourself, saving, and watching your credit. Opportunities will present themselves. Hope you have a successful 2010!