Pulling a $500,000 Trigger for Someone Else Advice

[Johnny Brines]

Hello BP People of the world,

My name is Johnny. I am one of those "Realtors"... you know the ones that don't invest yet help others that do. Recently I have discovered that the biggest reason I never pulled the trigger for myself was the misconception that "lack of funds" was my issue... Lack of understanding what my true hold up was has been the biggest issue. But now I have a handy situation I do not know what way to go with and with tearing through all the BP podcasts in a few weeks reading through Rich Dad and right now the Landlord book, I have decided just to DO what has always been suggested on BP and  reach out to you as a community.

Here's where I greatly need advice:

1) Should we use all cash or finance our first deal. We have the option to do either.

I know how to run calulators and the difference between coc and cap but I have not run across anything that would give me advice as =to which would be a more conservative less risk approach.

2) Does the plan of doing a "fun" one first sound reasonable?

3) Any hiccups, warnings, or flags

4) Is there anything I should be asking that I am not.

I started in this business in 2012 as a investor's agent... Now I didn't quite know what that meant at the time but I had enough knowledge and hunger to research for each investor I helped. I have never had a investor lose money with me, I have been very happy with that fact and over the years have learned much about this field. I now specialize in coaching and training agents. Through this process one of my client approached me and stated that they would like to go into business with me investing in real estate now that they have semi -retired from the residential business. She has $500,000 liquid and really wants in this space, specifically buy and hold and Ideally buy and hold furnished for wealthier individuals coming in for work. 

She is ready to go, now. And wants to jump shoot and then aim. I have slowed the process down, but want to make sure I am not slowing it down just becouse of my insecurities (this makes me more nervous for some reason now knowing that I am involved). She loves the idea of buying a turnkey to decorate and put on airbnb. This jazzes her becouse it gets her close to the ultimate goal. So my proposal was to start in an area where we could turn and sell fast if need be on our first deal. We have targeted an area I am familiar with. 

She has also been clear that this money needs to return as well so I suggested that we start with a "fun" one since she wants to jump both feet in yesterday and search for a property to do standard buy and hold and rent that out afterwards. I was originally searching MLS and preparing for retail pricing until I heard the latest podcast.

Thank you SOOOOO much for any thought and advice.