Made First Deal, What to do Next? Suggestions?

[William Muhlstadt]

My name is William Muhlstadt, I am a 19 year old college student at USF, and I just made my first deal a couple of weeks ago. I got a 3 bed 2 bath in Saint Petersburg Florida under-contract for 60k. Since I do not have a list of investors, I decided to list the property with the firm that was teaching me to wholesale all together. The house was valued at about 130k on the high side, we put it up on MLS for 79k, five minutes later a buyer sent us a contract for 81k. The house fee was about 2,000 along with 7% commission. So I cleared around 13k. It was a HELL of a deal.

My question is what to do next. Should I sit on the money and continue to try to make money without money and further my education in real estate? Or should I use that money to jump into the game. (With some sort of guidance)

I would love to hear all of your opinions!

[Zach Kidd]

Firstly, congratulations on a great first deal!

Your question begs a few questions, though. What are your goals? What are your intended strategies?

Let that guide you. 

In the meantime, if you haven't already hired a CPA or Tax Attorney, do it immediately. They can guide you with the tax consequences. 

For example, do you know about 1031 exchange? Perhaps that would be the best immediate strategy. Perhaps not. But understand it's just as important to keep your  money as it is to make your money. 

If you can legally avoid paying taxes on your profit, and make another investment at the same time, you will be much further ahead and sooner than if you pay Uncle Sam 30% or more each time you do a deal.