They say we're in the bottom of the sixth!!

Hey Bill,

For someone starting out in this, either wanting to do flips or possibly rentals, what do you think is the right course? You have posted 2 articles tonight and the one about not as many buyers out there is something mama and I have discussed alot. We have said we wanted to go into all deals thinking flip and then if it doesn't sell within a couple months then turn it into a rental and get our money out and go to the next.

THANKS for you time and opinion on this!

Hey Bill,

Was just thinking I would put a few things down about us to maybe help you answer my above questions. We have about $100k to play with right now. Can borrow about $45k from my 401k if we found something else while the other was being used. We will have almost $200k more come Jan 1st when we put mama's 401k into a self directed ira. Mama got layed off last year and is collecting a severance until Jan 1st. I have a job and it looks like its here to stay. I get paid a very nice salary, between $80k-90k and we are debt free except for our house. We are cloing on our first flip on Tues and already have a very interested buyer. We are wanting to make sure we make the right decesions and don't want to get paralyzed with fear by over thinking anything. Which is the reason I am asking you and anyone else who has been successful with REI that reads this for their opinions. Appreciate your advice!

one the questions that need to be asked is your risk tolerance. Buying single family homes in a distressed manner and at a deeply discounted price is one solution. But if you don't have this experience or the skill set for the rehab process; then you have to really think hard about this direction. (Sure you can outsource the rehab portion but that can become another type of problem)

With your resources and income, you could also decide to jump to the head of the class and buy a large multi-family complex (100+ units) and work on increasing the cash flow, cap rate and profitability of the complex. If successful, you could go from buying a 3 million dollar complex and sell it in a couple of years at 4 million dollars. Of course, there are some problems with this solution too as it puts all your eggs in one basket. But at least it is easier to watch.

I could go on and on about some options for you so if you get some time and are serious about your immersion into REI, send me a PM with your contact info and I'll call you and give you my two cents in detail.

I will be glad to see the bottom of the ninth