Never invested..somewhat afraid...will have $30,000...quick turnaround make a profit?

[Bernie (FL)]

I am refinancing and am in a dilemma on what I should do with the cash I would be pulling out (30k).

Should I pay off some bills? Put in a pool and increase my value? Invest in real estate?

If I chose to invest in RE then it would have to be something that would be a quick turnaround/profit so I wouldn't be tying up the money for any extended length of time.

Any suggestions???

[Maddog56]

Why did you refinance in the first place? What were your goals/objectives? Given the costs associated with pulling out money in a refinance, the "street wisdom" would seem to be that you should have a plan already, especially in today's real estate and mortgage martkets.

The things you suggest might be good ideas, but it depends on what your circumstances are:
How much debt do you have? Is the interest high enough to make the new debt (refi) worthwhile?
Will the pool add more value than it costs (my opinion--not likely in most markets).
As for investment, if you can put the money to work making more for you than it costs, go for it! You've made a great choice.

Regardless, good luck with your decision.

[Bernie (FL)]

I haven't pulled the trigger yet (refinancing), but am contemplating doing it because I have high interest debt I wanted to payoff, but if investing is the better path then that's what I want to do, but I've never taken the giant leap and I'm just trying to get some insight from the seasoned investors on this sight.

[Burke]

I am definitely not a "seasoned" investor at this point but.....

Some of the questions that I would be asking:
1. Will it take all $30K to get rid of your "high interest" debt? If not, maybe you pay them off (or the very highest ones) and invest the rest.
2. What is the interest rate on that high interest debt? If you can get a higher ROI on your money by serving as a hard money lender or partnering with another investor, then you may be better off investing it. However, with this scenario, you have to be prepared for the reality that your investment plan may not yield what you estimated in the beginning. I know $30K doesn't seem like a lot for hard money lending but I believe you can find someone who can use it for a short period of time and give you a pretty good return.
3. If you paid off all your high interest debt, would it allow you to quickly build up capital to invest since you are no longer making those monthly payments. Obviously, you have to calculate in the cost of your debt service on the refi loan. You also need to keep in mind that the cash you pull out is tax free (at least that is my understanding) and that the interest payments on the refi are tax deductible.

It is tough to give advice to someone else without knowing all the details of your particular situation but I would probably be inclined to say pay off all those high interest debts first (either with a refi or just plain "buckling down" and getting it done) and then start building a cash base to invest with or using some of the creative techniques.

Also, I agree with Maddog on the pool. Unless you know for sure that the cost to put the pool in will be less than the increase in market value from having a pool, then I would pass. You may also want to check with your homeowner insurance carrier. I suspect the pool will increase your liability risk and also your premium but maybe not enough to worry about.

Those are my thoughts for whatever they are worth.

Burke

[Aldo]

Please.....No, pretty please.....Wait, even better......Pretty please with sugar on top. DO NOT tell me that you are doing a re-fi on your personal residence if the proceeds are to be used to satisfy personal debt.

I could go into some authoratative detail, but I'll hold off until your plan is revealed.

[Bernie (FL)]

I have two car notes that would be $24000 to pay in full. The interest rate is 8.9 on the one car and 6.99 on the other. The payments on both cars run me around $573 per month total.

I also have a Visa Gold that I have max'd out at $7500 at 11.5% interest.

I figure I could save myself around $400-500 per month by paying the above off with a refi.

[Aldo]

I really do not intend to delve into your personal finances and I'm not a qualified financial advisor. I'm just here to offer a suggestion or two.

Many studies have shown that cash-out refinancing is dangerous, especially when the cash is used to pay down other debt, especailly credit card debt. This probably isn't you, but many folks pay off their credit card debt only to max it out in short order.

There was a very good article on this very topic in our local newspaper which you can view at http://www.jsonline.com/homes/buy/jan06/386287.asp

Other tips would include refinancing the cars at lower rates. My car loan is 5.99% which results in a $397 payment on $20K for 60 months. Call your credit card holder to ask for a lower interest rate. I've done it and it works. Simply say that XXX Visa offered you 9.99% and you'll switch to them if they can't meet or, at least, come close to that.

Even better, though not often seen lately, are credit card promo offers at 0% for the first 6 +/- months. Latch onto that and, after 4-5 months, begin looking for the next 0% credit card promo. Using that method, I financed a car for four years without paying a dime of interest.

There are other ways to save on financing expenses and I seriously suggest that you look into that, especially in view of what you'll read when you follow the above link.

Good planning results in good luck. I wish you good luck.

[Bernie (FL)]

My Visa is with my employer's credit union and they won't lower the interest rate.

Also, the higher balance car note was a refi believe it or not and the 6.99% car note was a used car purchase for my wife who is alone here with my 2 homeschooled children and would be in dire straits without me buying a 2nd vehicle (bought the car in October) if an emergency should rise, god forbid.

I work 45 miles from home and prior to October only had one car.

If I could make a rather quick turnaround on investment I would invest the money but right now I can't think of any.

[Aldo]

Re-call your credit union and tell them that, if they don't give you a better rate, you'll get a card from someone who will. It might be interesting for you to compare interest charges. By some coincidence, I have $7572 on a credit card at 9.99%. My current interest charge is $65.13.

You should seriously consider using those 0% credit card promos when they come along.

[Dan Auito]

Bernie, don't forget that options cost next to nothing and when you find a screamin deal the money finds you! Real estate is a very diversified game and many ways don't cost much to play!

[Bernie (FL)]

You make it sound so simple.

I've never done this before (rei) and without a mentor to help me through my first deal then I won't take the plunge.

I don't dare gamble and take a chance on it affecting my family to a point of no return.

[Dan Auito]

Bernie! FIND A SCREAMIN DEAL. And you won't have to use your own money. Look for a deal that no one else knows about and get a contract signed contingent upon your partners approval.

I'll find you the money once YOU find the deal!

[Bernie (FL)]

I'll give it my best shot. I just a need a little guidance on what you would consider a SCREAMIN DEAL.

[invest.realestate]

Dan what do you mean by options?

[Dan Auito]

An option can be any number of ways to tie up a deal while you find the end buyer.

For instance, a contract to buy contingent upon partners approval can be considered as an option as it allows you to control a property through the contract you write for a limited amount of time (contingent upon partners approval).

Other more traditional options generally require you to forfeit option money if you do not exercise your right to buy at a certain price by a certain time, say you tie up a potential good deal at $100,000 for 2 months with a $2,000 option agreement.

If you know you can find a buyer at $125,000 and close then you exercise if you don't find a buyer you can forfeit the $2,000 and walk away.

The idea is to control as many or as much asset is possible with the least amount of money or risk!

Bernie a screamin deal is generally buying something at 40% or more off its true value, this isn't always easy but you must continue to look HARD to find such deals, networking, driving, researching asking people questions and following up on all potential leads continuously usually will bring at least 2 deals like this every year to the average hunter.

Take an hour a day to devote to doing the above in search of the screamin deal and know that it is done everyday by those who truly believe they can find it. The key also is to act as though you have all cash and can close FAST!

The money will come when the deal is at hand, but it truly must be the screamin deal!

[Bernie (FL)]

I saw what types of investments John Michael advertises and it looks really good to me.

Any comments?

[Aldo]

Just a suggestion and it may not even apply in your area. In the RE section of the classifieds in our local paper there is a separate category for RE priced under $50K. Most aren't good deals, but a few are, depending on the type of property you want.

Also read the classified RE ads in the Investment RE category, especially the ones near the end of that category. A few years ago I was looking for a multi-family and, in that category, found a misplaced ad for a SFH for $20K. I bought it the next day, spent $3200 on upgrades, and sold it for $42K. The deals are out there but you have to beat the bushes to find them.

Now, with all due respect, I need to take you to task.

I've never done this before (rei) and without a mentor to help me ......
What's that all about? Are we chopped meat, or what? You have more mentors here than you could easily count. There are a lot of folks here who are chomping at the bit to mentor you, if you'd just ask a specific question.
Here's a suggestion to test this out. Find a property that you feel is a good deal and assemble the numbers (ask/offer price, number of units (2-4 is ideal), gross rents, probable financing arrangements........you know the drill.

Place that info in a new thread with a Title that asks for opinions, such as What Do You Think? or Is This A Good Deal?. Everyone has an opinion and many are willing to share it.

......through my first deal then I won't take the plunge.
George Washington Carver once said, "95% of all failures are those who have the habit of making excuses". With all due respect, "I need a mentor" is an excuse. You don't need a mentor and, except for here, you're not likely find one willing to walk you through a deal start-to-finish.

The true bottom line is that you (really and sincerely) either want to do this or you don't. Thinking that investing in RE is cool and easy way to get rich is a misconception. It may be cool, but it isn't easy. If you deep-down-truly want to get into this business, you WILL make it. I guarantee it. We're here waiting to help you start and will certainly be here to help you over the bumps in the road. If you provide the destination, we'll help you draw the map to get there. And, if you don't make it, my name isn't Dan Auito.lol

JUST DO IT!

[Bernie (FL)]

Thanks Aldo. :thumbsup:

I really really want to do this but am just a little hesitant because of past failures (not real estate).

I think if I try on my own without a little coaching, I'm doomed. I guess you can just stamp SUCKER on my forehead.

I will spend at least a little time each day "beatin' the bushes" for that jewel in the rough.

I will let you all know when I think I've found something.

:SM107:

[brianb_cobbres]

If I can find a deal then anyone can. Nuff said.

[Bernie (FL)]

Brian that baby pic gives me the willies.

Thanks for the words of encouragement.

I will try to "Gitter Done"

:SM030:

[Aldo]

I think the baby needs one more eye at the top center to close the circle.

I'm a lot like Brian except that I'm usually not looking for the super deals. You may have read here about the $20K flipper I found a while back. I made $18,500 on a property I wasn't even looking for.

[Bernie (FL)]

I'm not looking for super deals either.

I would be happy if I cleared a few thousand the first time around.

[Dan Auito]

Bernie, why aim low? When you could just the same spend the same effort on finding the GREAT deal.

The trailer park deal took no more effort to find than anything else and netted $60,000 in one month!

Don't aim low!!!

[Bernie (FL)]

Dan:

I will feel blessed no matter the outcome, as long as it's a net profit.

I appreciate the pep talk, but I'm going to remain optimistic until if and when it happens.

You are a nice guy and I failed to thank you for talking to my wife via the phone a month or so ago about the home next door to us that is still on the market for $174,900.

Glad to hear you are all moved into your home. New construction?

Take Care

Bernie

[invest.realestate]

Can I jump on this bandwagon? Here is the scenario. I welcome all comments, criticisms etc: 2 family bringing in 2400/month. List price 185k. Location: 38 brook st. Sanford, Maine, a rougher section of a small city. Lot size .15 ac. taxes not listed. (I'll find out) The way I've learned to do cash flow analysis I show that at full asking price, this scenario would bring in 370/month + cash flow. (I'm assuming I can do the financing and get 6% for 30 fixed with 5% down. I was considering using a HELOC to pay 5%) How do you guys see this? Appreciat any feedback. dave

[Aldo]

I agree with Dan, but also understand Bernie's apprehension due to having been burned in previous ventures. I've been there. I was seriously burned in stocks and swore I'd never do them again.

Let's draw an analogy here by saying that, after an accident, I'd never sky dive again even though I'd really like to. I'd really like to; but now I'm gun shy. Later, I decide that somehow, some way I'm going to do it and I spent a lot of time thinking and talking to others.

Voila! I found the way to rebuild my courage. I immediately began jumping off of curbs. When that worked I moved up to jumping from the hood of my car. Next came.......blah, blah.

The bottom line is that I now have some highly successful stocks and funds. For a new investor who has never suffered a setback, I agree to shoot for the stars. One who suffered a loss in (any) business and is willing to re-try, in my opinion, should work at a pace within their comfort zone. At one time, curbs were my comfort zone.

In looking back, I believe I'd have done better by eating the frog and starting the jumps from the hood of my car. I'd propose setting an initial goal one notch above the comfort zone. It would clearly be within reach but would require more determination.

[Aldo]

invest.realestate, you offer an excellent question, but I think that it's important enough for you to create a new thread. This thread is on a somewhat different topic and, as a result, people not interested in this particular topic will probably not see (and reply to) your question.

My reply is that the deal sounds good but the financing is probably unrealistic. Interest rates for non-owner occupied (NOO) properties are at about 6.5% or higher in most areas. Then, if you found 95% financing for a NOO property, there are thousands of investors who would like the name of your lender. The very general rule is that most banks will agree to 80/10/10 financing. That's an 80% mortgage, 10% borrowed money, and 10% of your own cash. There are variations which are available to advanced investors who have an established track record, but usually not for a beginning investor.

Again, I'd advise creating a new thread in which you'll have more than one opinion.

[Debbie]

Let's draw an analogy here by saying that, after an accident, I'd never sky dive again even though I'd really like to. I'd really like to; but now I'm gun shy. Later, I decide that somehow, some way I'm going to do it and I spent a lot of time thinking and talking to others. Voila! I found the way to rebuild my courage. I immediately began jumping off of curbs. When that worked I moved up to jumping from the hood of my car. Next came.......blah, blah.

Pretty neat analogy, Aldo. Did you come up with that or did you adopt it?
Sorry for getting off track but just a quick question then back on track....

[invest.realestate]

Hi Aldo,

Sorry about the out of turn question. I am new to this site and am still trying to figure out how to behave here. No harm intended. I'll try to learn how to go about starting a new thread. So my financing scenario seems doubtful? I'm going off what I saw advertised in the Boston Herald. No, I haven't called yet and talked with them. I have, however, talked several times with Franklin Bank and they offer 6.125 with (I think it was 20% down) 30 fixed with .5 points. That's not too far from the original scenario I put forth. I suspect that one needs to find a property that looks good financially and make an offer contingent upon finding financing at such and such a rate and see how the chips fall? Yes, I am new to this stuff. All right, let me have it. go! dave

[Bernie (FL)]

I will step aside. I know what I have to do. You all help Dave.

I will keep you all posted if and when I land the big one or little one.

:SM104:

[invest.realestate]

Hi Old man 42,
I appoligize for stealing your show. My bad. I didn't intend on doing that but now I see that is what I did. Still learning my way around the site. So, please keep helping old man and I will figure out how to start my own new thread. dave out

[Maddog56]

Starting a new thread is so easy that I can do it. Go to the particular area of interest (in this case "Buying your next property right") and at the top you should see a "New Thread" button. Click it and and start your thread...

[Aldo]

Geez, this looks like a thread I need to check several times a day just to keep up. Instead, I'll reply to posts in the order they were posted.

Debbie, yes, that was my own analogy. I'm good at that because I've had a lot of practice. Analogies are a super communication tool. Telling someone that their perception of an issue is off-base will not be well-received. Giving an example of what another did in a similar situation will be regarded as a totally different situation, even if identical. Offering a usually-exaggerated story (jumping off of curbs?) about a situation usually hits home if the story closely matches the details of the question on a different level. If you understood what I just said, you're a smarter person than I am.

invest.realestate, never apologize for doing what you believe to be the right thing. If you've done the best you can, there is no legitimate reason to call you on the carpet and that was not my intent. You said let me have it. You're learning and, for the life of me, I can't even imagine a reason for letting you have anything (except our help) for trying to learn.

A bit later you said I am new to this stuff. . I wasn't sure, so I checked my records and you won't believe what I found. Trust me, and I can document this, I was once new to this stuff.

OldMan42, get your butt back in here. I ain't done with you yet.

invest.realesate, creating a new thread is easier than tying your shoes. Simply follow Maddog56's suggestion. Select the forum you want to use for your question/comment and click to enter your post at the upper left corner. I'm guessing that you are clicking on threads in the right frame of the page. The links in the right frame are existing threads. Clicking on the forum names in the left frame will take you to where you want to be for creating a new thread.

[Bernie (FL)]

I'm back Aldo. :praise:

[Debbie]

Debbie, yes, that was my own analogy........ If you understood what I just said, you're a smarter person than I am.

I may not be super intellectual but I am very bright :icon_verw Besides, you put words that are well received, how can anyone not understand what you said.

Oldman42, good thing your body's back in here----you would've been in BIG trouble with Aldo. :SM134:

[Bernie (FL)]

Thanks.

By the way everyone, my name is Bernie and please call me that (Bernie). If I new how to change my user name from OldMan42, now I'm an even older man at 43 :frown:

I tried doing it through my user profile but only allows me to change email, etc which I don't need to change.

I really like what John Michael has to offer in regards to investments but don't really know a whole lot about him.

I know Dan can attest to John Michael's dealings as well as many of you on MB.

Thanks for your help and input. If..no, when I make my first deal big or small, as they say, "paybacks are hell" but in my case paybacks will be sweet. I always believe in returning the favor when someone gives of their knowledge and time. "Do unto others"

Bernie

[Aldo]

Bernie, welcome back. You was missed.

I can help with changing your username but, I'd suggest keeping the one you have for two related reasons. First is that you're family and we know you by your given and user names. Second is that there are a lot of lurkers/strangers visiting this site, none of whom needs to know your true name at first glance. Note that my real name is not Aldo; but, I will answer to that if food is involved.

I've not had business dealings with JohnMichael, but I can assure you that he knows his stuff. I'd talk to him in a New York minute if I was in the buying mode and if his business included Wisconsin.

I gather that you had a recent birthday. Okay, everyone, all in unison now, "Happy (sorry, belated) Birthday to You, Happy Birthday to You, Happy Birthday Dear Bernie, Happy Birthday to You."

Sorry if I was a bit off-key.

If..no, when I truly hope you truly believe that and were not just saying what you think we want to hear. Bernie, you've been in business before and learned from any mistakes you might have made at a time when you didn't have hundreds of family members to help guide you. My strongest advice is to jump off of that doggone curb and look to us when that rain storm tries to wash you away. Trust me, you'll see a bigger umbrella than you ever thought existed.

[Bernie (FL)]

I appreciate the belated :birthday: greeting. You just reminded me how old I am.

Thanks for the kind words Aldo. I am working on jumping off that doggie curb as we speak.

Have to run and get ready for work in a few.

The wife is yelling for me.

Gotta go.

Bernie

[Jim FL]

Oldman42,
For some reason, your screen/username here sounds familiar?
Have we 'talked' here before?
I apologize of that is the case, and if not, well, nice to meet you.
or, did you buy my course?

Either way, you said here that you were afraid to invest, and needed a mentor?
Guess what?

You now have more than 'a mentor', you have a whole family.
I don't get here as often as I'd like, but do come here and help as best as I can.......and the good news is this, there are TONS of people here willing and ABLE to help you.
So, fire away on questions, get specific, it makes our brains work.

To start, you do not have $30k in cash to begin, wipe that from your mind now.
Cash from a refinance, is a debt, and must be repaid.
The ONLY way to use that cash, is if the cost of obtaining it, can be beaten several times over with its use.
Meaning, if this $30k loan, or refi....whatever, costs you monthly say $400, then it sure better bring in more than that monthly, or quickly grow in size.

I recently used a HELOC (I don't like to), but, it was for a mere 8.5% rate, and only $28k.
I bought a nice little house, for $14k, put $10k into it, and then sold it, for $60k.
My HELOC only had one payment made on it, before the money was put back.

The only other way I'd perhaps use something like that, was if whatever I bought cashflowed so well,it made that money work for me.
Then the HELOC becomes a 'good debt'.

for now, you are new, if you refi, park the funds, or pay off some debts, whatever.
IF it frees you up for a smaller monthly debt service payment over all, and does not sink you deeper in the hole.

Then, learn here all the ways to make money with none.
Soon, you will then be able to take the money you do make, and see it grow by leaps and bounds.

I just closed a deal recently where I made (after taxes, about $50k.)
From that, I am buying 10, yes 10, small (single wide mobile homes) units as rentals, that all bring in about $400/month after expenses, with no debt service. The $50k for this purchase, came from a no money down deal, that I held for a little over a year.

Leverage your brain, not your wallet, or credit!

Take care,
Jim FL

[Bernie (FL)]

My head is hurting at this point.

I really don't know what to do. I want to make a better living for my family, but I feel like I did when I was a kid and I was being taught to swim and the teaching method was to push me in and being told to "SWIM". I almost drown.

That's the way I feel about REI. I want to learn but feel once I'm pushed in, that I will "drown". I can't afford to sacrifice my family's financial well being at this point. It took me 16 years of renting to finally obtain the dream of being a homeowner.

Now I want to invest in real estate but don't know what type of real estate investing is best for me to start with. If I could start with no money down investing then I'm all over it.

JimFL, I became a member on MB last year so, yes you have probably seen me post on here but I haven't started a post that has received as much response as this one. I didn't buy your course. I do have a lot of information that I have compiled over time. I also have the Carleton Sheets course which I'm told is antiquated in today's real estate investing world.

Thanks for the pep talk and advising me on what I should do with the 30k I anticipate on pulling out. I might just refi my first and heloc into a 1st and leave my equity alone. My home has increased in value from 160k when I bought it to 190-195k. I had a couple of realtors comp it out for me. If I were to combine my 1st and heloc I would be at 80% ltv. It would save me a couple hundred bucks each month, but I really needed to save more because I have two car notes that total around $573 a month and a couple of credit cards that I pay $200 a month on. If I were to take out another heloc I would be able to pay both cars and the credit cards off, but that would eat up most if not all of my equity.

[Aldo]

Bernie, think, really think, about my replies to two quotes from you.

I haven't started a post that has received as much response as this one.
Has it occurred to you that you will probably get more replies than this when you have issues that directly relate to acquiring a property? We have family members here who thrive on helping others do deals and take a pass on threads unrelated to their area of expertise.

.....teaching method was to push me in and being told to "SWIM". I almost drown.
But you didn't, did you? You knew what you had to do and you did it. Though, on its surface, the definition of a Hero doesn't apply here......until you consider it for a moment. A Hero is a person who feels the fear and does it anyway.

Okay, I agree. At this point, you're probably not exactly sure about what you have to do/purchase. Try this on for size. You own your home and I'm sure it's a very nice home, but it obviously produces no income. Though you'll lose a degree of privacy, why not consider buying and living in, say, a fourplex? A relatively small loss of privacy could be your springboard into RE investing. An added benefit is that most, or many, lenders will consider 50% or more of the rental income as your personal income. That will increase affordability greatly. I could ramble for hours on this; but, first you must consider it and decide whether this is something you are willing to do. Beleive me when I say that I can offer forty quarts of reasons which justify doing that.

[Dan Auito]

Hows that for a name change Bernie!:smiley3:

[Bernie (FL)]

I like it, I like it :thumbsup:

Well...got to get ready for work, SSDD. (I really don't need to translate...do I?) :smiley8:

Talk to you all later. Please give me some ideas of no money out of pocket investing.

Bernie

[SlumLordMike]

Bernie,

One of the most basic no money down deals is to have the seller carry back (finance) the down payment and closing costs.

Another way is to have the mortgage lien on some equity in another property for the down payment. (by doing an owner encumberence or filing a 2nd)

A third way is to let the mortgage grantor put an assignment on a savings, life insurance, or stock portfolio.

[Jim FL]

Bernie,
Much better calling you that by the way, instead of 'oldman'.

Anyway, you said in your last response here,
"Please give me some ideas of no money out of pocket investing."

There are TONS of ways to invest, with 'no money down'.
The thing is, Bernie, there is cash involved.
You will have things to pay for, throughout your journey to become an investor.
The good news, is that many of the startup expenses can be minimized, and of course, will not always need to be repeated.

You will first need to spend some money on education. Sure, we can help you here, and even direct you during potential deals.
The thing is, you will need to know first, that you a. have a deal, and b. know how to put together the transaction.
Since you've read here, for a while, and seem to indicate pretty clear that you have no cash, or credit, and want to make some cash, then focus on techniques and methods that facilitate that fast cash in your pocket.

Real Estate investing is a business, and must be treated as such.
The next expense, after education, would be marketing. Before people will call you, in order to see whether or not you will buy their house, they need to know you exist, and where/how to reach you.
This expense will be ongoing, but pay for itself if done properly.

The thing is, what most people envision when they decide they 'want' to become an investor, is a better lifestyle, thru increased income.
So, how will more money effect your life?
Do you have a plan?
Realize one thing going in, the more you make, the more you spend, in most cases here in the good ol u.s.a.
I understand that, more than I care to admit sometimes.
But I digress.

The thing is, before you can decide on which vehicle to use to get to your goal, perhaps it would be wise to work the issue backwards.

Where do you want investing to take you?
Long term?
Short term? (I know, you want CASH now, we all do.)

Now, with long term, would you enjoy making say, $30k per deal, where you work your posterior off, obtaining the deal, then selling it, each and every month?
or
Do you want to own a whole slew of properties, that kick off cashflow, and consistent income, to live free, without schedules for the most part, or others to answer to?

Me?
I want, and have both.
The first is my "j.O.b.", and honestly, most times, it stinks, too much work.
However, the rush at a close, keeps me working thru the rest.

So, where do you want to go in the long term?
Then, where are you now?
and, how can you change where you are now, short term?.............and will that be a step in the process to get to the long term goal?

I'll be frank with you. When I teach people to invest, or talk about it with those 'interested', or 'wanting to become investors', I will dangle deals on things in front of them that show the "big fast cash paydays!"
You know why?
Because most people seem to think a mere few tens of thousands of dollars added to their bank account will change their life.
For some it will, for most, it does not..............in the long run.
The thing is, when that large cash pop comes from a newly learned investing method, or idea, it addicts some of those people.

This is when the WANT to invest, turns into a NEED............or, it doesn't.

When that happens, things change.
Hence, the reason I'll push people toward a quick turn deal for a large payday to begin.

The thing is, are you prepared for it, and if/when it happens, what will you do to change your thinking and behavior to run with it.............and make more, and more, and more.

You see Bernie, for those of us who have invested for some time, and for some who have not (the fast learners as I call them), the end goal, is FREEDOM.

I really could care less how much money I make really, it's not important.
What is important, is what I do with my time.
And yes, that means, more money, or passive income from investments, thereby freeing up my most valuable commodity.............time, with which to do what I want.

I hope you can lead yourself here, it's a great place to be.

So, decide, you, here and now, where you want to be in 20 years, then 10 years, then 5 years, then 12 months from now.............and make it happen.

As for some no money down ideas for you...........here are a few, but remember, only you can decide which will suit your needs best.

Lease Options-----------sandwich type, no money down, three profit centers.

Subject to- you buy, leave mortgage in place, then do as you please with the property, because you own it.

Option- Tie a house up at predetermined terms, sell those to another buyer, for a profit.

Seller Financing- seller carries the mortgage, allows you in with zero, rare, but doable.

Wholesale deals--------assignment of contracts, double close etc. quick in and out method, buy low, sell low, keep small spread. Easy, low risk, but does need to be done correctly.

There are of course TONS of others, but those would be the ones you'll read and hear about most often in the REI discussion world.

Bottom line, we are here to help, but there are some actions you must take to get moving first.

Hope this helps, and sorry its so long.

Take care,
Jim FL

[Debbie]

Great posting, Jim!
Although, Jeff & I have been investing since we've been married since 2000.
It's still a scary world and plenty for us to learn. Magic Bullet is a must have website! :praise:

[Dan Auito]

Indeed Jim, great post. Inspirational too! Hey anytime you want admin status around here Jimbo, just say the word. I know you have your own site to keep tabs on but what the heck a little more power and prestige around here is well deserved regardless! You da man Jim. Thank you so much for being here big guy, you are a real asset to the family and I personally can't begin to thank you enough.

[Bernie (FL)]

I 2nd the motion Jim. A lot to digest but very informative.

I want long term from rei. I have been at the same job for over 16 years and spend little time with family, except for weekends.

As far as education, I can't afford money for boot camps, etc. I just download everything I can from here and the internet. When I have a moment or two I read it and try to absorb as much as possible. I have a few hundred mega bytes of info that I haven't even had the chance to read yet on various types of rei. I know it's not going to be handed to me on a silver platter and that I have to work for it but I have to pay the bills and keep food on the table, roof over our heads, etc. I plan on taking some time off at the end of March (my kids spring break) but won't being going anywhere. I will try to utilize a day or two and give this rei thing a shot.

I live paycheck to paycheck and sometimes struggle doing that. Also time management is a problem because I have so little time to manage. I usually have an hour or two each weekday to do what I have to do before I leave for work which is a 45 mile drive one way. I'm not trying to make excuses, just giving you some background information.

I have gained a bunch of knowledge just from MB and all the combined experience from you fine bunch of people on here.

Thanks so much for the time you took to :SM135: all that info, you are very nice.

[Aldo]

What Dan said about what Jim said.