katalyzt
New Contributor
I was reading the thread started by Russ that is titled $3k to $1m in a year. It's a very good thread and inspired me to post my plan and see what you guys think. In Russ's thread he made the challenge to make a plan with a few restrictions such as you only have $3k to start, you're only 17 yrs old, etc. My situation is a little different... I'm 22 but I have $0 starting capital, actually hold on... I have $281 , and I have a full time job. But I'm accepting Russ's challenge as my own none the less. I have one year... Hear it goes...
1. Eductate myself on flipping/investing real estate. (I feel I have done enough to get started) This will obviously be an on going process.
2. Get credit to 720. I currently have a company working on my credit and it looks like I'm 2 months away from 720. Initial sign-up cost $99 and then $75 every two weeks after that.
3. While waiting on better credit... Find some motivated sellers (newspaper ads, drive byes) negotiate a deal and sell the contract to rehab investors (find them in the newspaper as well) for some quick cash.
4. When the credit score reaches 720 I will have a couple options. The idea I'm leaning toward right now is find a nice property with a motivated seller and get it with about 20%-30% equity. If I can't get it with that equity existing I will create it using the cash I have been saving up from flipping contracts.
5. I will take a HELOC out on closing and re-invest the cash (must be at least 50k) with a company I know of for an 8%-9% monthly return. That monthly return will pay the mortgage on the property and put a little cash flow into my pocket.
6. Then with the property I do a Lease Option to Buy for some more passive income.
7. Then repeat the process with more properties
I probably got some of the terminology wrong in there but regardless I think it's a good plan. What do you guys think? Thoughts, Suggestions?
Financial Freedom 2008 here I come!
1. Eductate myself on flipping/investing real estate. (I feel I have done enough to get started) This will obviously be an on going process.
2. Get credit to 720. I currently have a company working on my credit and it looks like I'm 2 months away from 720. Initial sign-up cost $99 and then $75 every two weeks after that.
3. While waiting on better credit... Find some motivated sellers (newspaper ads, drive byes) negotiate a deal and sell the contract to rehab investors (find them in the newspaper as well) for some quick cash.
4. When the credit score reaches 720 I will have a couple options. The idea I'm leaning toward right now is find a nice property with a motivated seller and get it with about 20%-30% equity. If I can't get it with that equity existing I will create it using the cash I have been saving up from flipping contracts.
5. I will take a HELOC out on closing and re-invest the cash (must be at least 50k) with a company I know of for an 8%-9% monthly return. That monthly return will pay the mortgage on the property and put a little cash flow into my pocket.
6. Then with the property I do a Lease Option to Buy for some more passive income.
7. Then repeat the process with more properties
I probably got some of the terminology wrong in there but regardless I think it's a good plan. What do you guys think? Thoughts, Suggestions?
Financial Freedom 2008 here I come!
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