Thoughts on My strategy

[Isaac Dominguez]

Hello guys,

After reading a lot here in the forum, i was convinced that using my own money was not the best option for me to start flipping houses in a partnership with a friend. So after doing some thinking and analysis... i thought of this strategy

I have 50k Cash(which i'm not going to "use")

I have obtained 3 LOC's :

LOC 1 = 25k at 7.25%

LOC 2 = 25 at 8.25%

LOC 3 = 10k at 6.25%

I also took out a 13,000 credit card with no interest for first 15months.

My intentions are to take 25k from LOC 1, 10k From LOC3 and 15k from LOC 2 2 to finance my first deal.

Then i will use to the Credit card to pay the monthly payments for the LOC's which comes to me $1,000 a month, for the next 6 months(worse case).

This will leave me with out pockets expenses of : (for the credit card)

Month 1 = 20.00

Month 2 = 39.6

Month 3 = 58.81

Month 4 = 77.63

Month 5 = 91.08

Month 6 =114.20

Total: 406.28 over 6 months.

Projected profit would be no less than 10k..

Then i will use the projected profit to pay off or pat towards the highest interest LOC or even the credit card at that point...

I would appreciate any thoughts or suggestion. This is really my first time opening myself to using other people's money and getting myself into debt.

Thanks!