Analysis Paralysis

[David Begley]

My background/career included almost 20 years at a regional wholesale bank (FHLB) and as a CFO for a local company the last five years. The bulk of my retirement assets are in a company sponsored non-qualified plan that cannot be touched or "self-directed" - I chose to annuitize the plan early a couple years ago and it generates approximately $60,000 annually for the rest of my life or my wife's if she survives me. I left the CFO position to begin a career in real estate investing toward the end of 2013 and still haven't pulled the trigger on a purchase. A few offers, no closing.

My dilemma and need for mentoring and advice: I have $100,000 in cash to invest but now without a W-2 source, a job or any income besides the annuity mentioned above, even the Bank I've had a relationship with for years and have over a half million $ in deposits or investments with, won't even consider lending to me for even a home equity line of credit, much less to mortgage an investment property. My FICO is above 700, but they want to see employment income. I want to do this full time, but my paralysis comes from the fear of buying income properties with all cash, exhausting my capital and not able to pull the equity out for additional investment activities. Since I'm committed to only putting $100,000 at risk, what means should I explore to best put this capital to work so that I can continue to accumulate cash-flow properties using as little of my own cash as possible.

[Bill Gulley]

Move your funds to a smaller bank! Consider CDs and pledge amounts bringing the LTV down with you down payment. In a couple years you'll have RE income as self employed. Payoff debt more than buying properties.

Look into the seller financing side with investors!

Sounds like your bank had some personal issues.

Why not get on the retail side as an independent broker, did you do any underwriting? Why look at dirt when you could just take the green side? LOL :)