Just got 25k business line of credit. Help

[Jose Castillo]

Hi BP, I was just approved for a 25k business line of credit. My business mostly consist of wholesaling so I was wondering if it'll be best to leverage my line of credit for more marketing or should I hold on to it for a down payment on a cash flowing rental, or even use the money for a flip? Please help, any suggestions and advice will be greatly appreciated. Respectfully, Jose Castillo

[Owen Dashner]

My vote would be marketing, but you are kind of all over the place in your post (wholesaling, rentals, flip, etc.). I would first sit down and put a plan together based on your goals and treat this like a business. Wholesaling and flipping is transactional real estate, and can be a great way to generate cash, but it is not a long term wealth building model. A lot of newer people get approved for a LOC or get access to OPM and they start getting antsy like it is burning a hole in their pocket. Take time to research the market(s) you want to operate in, the type of business you are going to have, and what your plan is for the near term and long term. $25K is a good start for a marketing budget, but you need to be smart about how you deploy it, or it will disappear quickly.

My general advice would be to get skilled at one aspect of this business and have some consistent revenue coming in before you try to tackle another type of real estate investing.  Don't fall victim to Shiny Object Syndrome.

Good luck to you!