GoFuckYourself.com - Adult Webmaster Forum - View Single Post - is 25k$US cash enough to start investing in real estate?

latinasojourn · 05-14-2004, 08:05 PM

depends on where you are.

if you only have 25k to invest, and you don't own a home i would buy a house to live in.

i would try to find the worst house that is free and clear on a block of nicer houses and try to get the owner to carry the financing.

i would try to buy it with 10k dp and use the other 15k to do a quick cleanup and immediately put the house on the market and maybe net out 50-75k.

i would then do the same again, only now a more expensive home, not putting all the money into the downpayment, but allocating maybe 10% dp, 20k for fixup, and the remaining to help with debt service.

try to flip 2 houses per year. try to make many offers on homes---offer lowball deals on all owner carry properties with terms you can handle. you are looking for leverage.

coupled with the tax advantages for personal ownership and the fact that you are trading up with each purchase you can defer the gains until you retire (or you die).

this is the fastest way to build net worth.

05-14-2004, 08:05 PM
latinasojourn Confirmed User Join Date: Oct 2003 Posts: 3,191	depends on where you are. if you only have 25k to invest, and you don't own a home i would buy a house to live in. i would try to find the worst house that is free and clear on a block of nicer houses and try to get the owner to carry the financing. i would try to buy it with 10k dp and use the other 15k to do a quick cleanup and immediately put the house on the market and maybe net out 50-75k. i would then do the same again, only now a more expensive home, not putting all the money into the downpayment, but allocating maybe 10% dp, 20k for fixup, and the remaining to help with debt service. try to flip 2 houses per year. try to make many offers on homes---offer lowball deals on all owner carry properties with terms you can handle. you are looking for leverage. coupled with the tax advantages for personal ownership and the fact that you are trading up with each purchase you can defer the gains until you retire (or you die). this is the fastest way to build net worth.