What would you do with 15K cash?

[lvaughnr]

What would you do with 15K cash? Where should I start? I am a begineer investor looking for lucrative yet safe investments. I have decent credit and live in NW Houston.

Vaughn...

[tedjr]

I would look for a preforeclosure property with a mortgage less than $50000 where the property remodeled would be worth  $100,000. Spend  about half the money getting the loan current and giving the owner a few dollars to get set up some place else and the balance plus some credit card money fixing up the house and reselling it.

There are other ways also. Flipping good deals to other investors especially if you found a good one already for yourself. You could do a bunch of sub2 deals if you can find some that will cash flow. I have mostly been a slum lord where the payments on the property are less than $500 per month.

You could always loan part of the money to me so i can fix up two duplexes that I own. I need about $6000 and would pay up to 24% interest. Could use my truck as collateral.  I wish you good luck in whatever you buy or do.

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737

512-301-9171 home
512-587-6177 mobile

[lvaughnr]

Thanks for your reply Ted.
I am trying to get a preforclosure val at 125K for 80K. No major problems. Use 12 of the 15K for downpayment and closing costs.  My PITI will be about 950/mth (taxes are very high), with a HOA of 300/yr. Will try to rent same for about 1300/mth initially. If I can't get renters within a 3month frame will try to sell property for 110K. However, all this is a pie in the sky since I am not certain that I will get this property - there may be other investors with more dollars eyeing this property.
Then again if I do not get this property it may be a good thing since I will definitely consider your offer.
Thanks again for the reply.
Regards,
Vaughn...

[StacyKellams]

Vaughn,

My advice to you would be to take $1,500, or 10%,  of your $15k and invest it in yourself. Invest it in your REI education. Buy the good REI courses and attend your local meetings and learn this business well BEFORE you start risking your hard earned nest egg.

I know you haven't spent enough time studying this business because you don't understand how to purchase property without using your own money. The last thing you need to do with your 15k is use it as a down payment on a single family property.

Until you learn how to buy a property without using 1 red cent of your own money you should keep your money safely in the bank.

[lvaughnr]

I did not get the property and apparently this was a good thing. Thank you for your advice Stacy and I do agree with you. I have to start thinking outside of the box - in unconventional ways.  And the only way to do this is to acquire knowledge.

Thanks and regards,
Vaughn...
lvaughnr@yahoo.com

[Anne]

Vaughn,

I strongly suggest you consider investing in mobile homes.  I'm not familiar with the local laws relating to mobile home investing in Texas, but for many people, myself included, buying and selling mobile homes has generated great yields.  

Anne_ND

[Eric C]

Hi -

I think have some great replies here and all of them have merit.  Stacy's idea of putting some of that money into your education is right on the money and you should give it some serious consideration.

Anne is also correct about the MH business. Although Texas has some unique rules and regulations that you need to understand before you begin, the MH biz is a great playground in which to learn. The lessons there can be easily applied to more sophisticated markets when you are ready.

Just remember that yield is not everything -- don't lose sight of the dollars either.

Take care,

Eric C