Quickest way to build wealth?

Question

I am considering stopping paying extra money on my own home, and putting it toward real estate.  I think that I will have about $50,000 in savings to mess with in the next few months if I stop paying extra toward the house.

With that said, what would you all do?  Look to flip, or look to rent?  I want to build wealth, but also want to have as much cash in my pockets as soon as possible too.

Joshua Dorkin · Answer

Michael - It seems that mouschi (Jason) has definitely made me as confused as possible.

It looks like there is another post very similar to this one in the Rental property/Landlord forums.  As a result, I'm going to shut this one down.

Please continue the discussion at:
http://forums.biggerpockets.com/viewtopic.php?p=90732

Jon Holdman · Answer

Building wealth and having cash in your pocket are two different, and often incompatible, goals.  Just look at most startup companies.  Early on they are trying to build up their business (i.e., their wealth.)  So, they burn through cash like crazy.  Once the business is up and running, they start actually making money.  I suspect that may be true for you, too, since I see you own your own business.

There are lots of ways to make money in real estate.  In addition to owning rentals and (I think you mean) fix and flipping, you can also wholesale.  Flipping and wholesaling tend to generate lumps of cash.  If you want spendable cash, you have it.  If you want to generate long term wealth, you roll that cash back into the next deal.  Just like a business owner initially rolls cash into growing the business.

Michael Shadow · Answer

Can all three of these threads be consolidated in to 1?

Thanks,

-Michael

Jason Schmidt · Answer

probably not - just be patient with me, I am new and barely have enough information to know what to ask :)