Best use of 20k$ in financing

[Frank Ochmann]

Hi every1! What would be the best use of $20k once I acquire the capital. I'm a beginning investor and looking for practical way to best set up my real estate biz. In essence, I'm asking about how would I structure the LLC then the trust, how would the flow of money look ? Any resources too would be greatly appreciated !

[Nick G.]

Hi @Frank Ochmann, the best use of that $20,000 once you have it would be to spend it on none of those things. 

Instead, spend all of your time learning how to analyze properties and the markets they're in, and how to use that information to be able to invest that $20,000 in the most effective way possible. New investors sometimes spend a lot of time trying to learn how to set up their business, assemble their team, set up their systems... all of which are great and necessary eventually, and they make you feel busy, but none of them actually make you money. Good investment properties are what make you money, so spend all of your time and money in the beginning just focusing on them. Everything else you can work on later once it's needed. 

As the old adage goes, things in life and business are 80/20. 20% of things in your business make up 80% of your success, so focus on that 20%, not other 80% fluff.