All Forum Posts by: Account Closed

Joel- Thanks for responding. Looking at the quoted statement, I can see how it would sound naive to someone without knowing my background. I was a cook/Chef for over 10 years. Started cooking for pay at 12 and held every job in the restaurant industry from crab steamer to Ex Chef/GM, including bartender and pizza cook. Food is my life and passion, I've been a Chef on a yacht and worked in several kitchens/bars abroad. Also have designed the new menu for 3 restaurants all in various countries. Having managed my own business successfully combined with my restaurant experience, travel experience and cooking skills, I'm extremely confident that I will be an excellent restauranteur.

I have no plans of buying/building a business in America or any Westernized country. To be honest I really don't like it here or there. I only return to make some fast $$ when I feel like it and go back to exploring the world. Running a business, especially a restaurant, in a developing country is COMPLETELY different than operating in the US. Much less overhead and regulations, not the normal ordering headaches you'll find, staff is much more reliable because they NEED their jobs and the stress level is minimal. That's not all the differences but you get the idea. My dream isn't to own a crazy multi million dollar ocean front sports bar on an overly developed island. What I'm looking for is small restaurant/bar/guesthouse on the sea, somewhere in the world, though tropical climate is a must. A very small place with a Jamaican/Tiki style and very laid back feel to it, maybe 10 tables and another 10 spots at the bar, with fusion cuisine of the world coming out of the kitchen made by my own hands. Wood fire oven and grill, chalk board menu, open/close when I feel like it.

I'd much rather buy a turnkey cash producing business with a long lease already in operation. I've found a few of these that I was very interested in. All the logistics that I had in mind were there, Visas, government stability, taxes, tourists, access to stock, etc. I just wasn't ready to settle down yet. One was on Koh Rong, Cambodia, one on Penang, Malaysia and the other in Vava'u, Tonga. However, I do like the idea of buying land and building something from scratch. I'll cross that bridge once I get this chapter of my life out of the way. Any advice on how to invest in this current RE market?

I should also point out that I am willing to possibly partner with a veteran investor. Since I'm bringing so much to the table, I feel I could be just what a REI is looking for. Liquid capital, great credit, proven business track record, contracting skills, intelligent, nothing but time and eager to learn. Before I get ahead of myself I should keep my head buried in these books and blogs for awhile though.

Thank you all for your replies.

Marie- I would love to finance my first property and most of the money to rehab/flip. I've spent my entire working life keeping my net worth and credit score high. Unfortunately, I have no work history or proof of income for the last 2 years so it's doubtful anything other than a hard money loan is going to happen. I'm trying to avoid a high interest loan that eats into my potential profits. I'm a gambler and don't mind tying up some cash if I'm confident and educated on my investment. If I could find a way to leverage my cash and new property against a low interest loan, I would.

Ed- This is precisely what I've been doing since the idea became stuck in my head to invest. I have a REA who is also a good friend. He's always done a great job and I have used him several times when thinking about investing in the past but always went in a different direction. REI and PM is his specialty so he's keeping an eye out for what I'm looking for. I've started to look at comps in my areas of interest. I'm keeping an eye on a few properties that just sold and also speaking with all the REAs I know to find out what types of properties are hot and where. I'll keep attending auctions to see what homes are selling for. This week I'm forming an LLC and setting up a new business account which I will use when purchasing this first home. Also, my contractors and inspector are lined up. Are there any foreclosure paid listing sites that are worth the money or do I continue to scour all the usual MLS sites and look for homes in my area with the white paper/blue tape?

Ned- Thanks for the advice. It's great to see someone from our area on this site. I loved reading your blog last night and will continue to do so. I always perform tons of research before jumping into a project so I'm trying to be fully informed before making my first purchase. My problem is more about patience, I'm not good at doing nothing. I literally have no stress and nothing to do at the moment besides research REI and look for homes. If I had the property, I would have a project to keep me busy. I can't stay in one place very long so that's why I would really like to get the ball rolling soon or I know that I'll loose interest in researching/looking and I'll answer the call of the open road again.

I'd love to pick your brain over a nice lunch and a few drinks. I'm living in Perry Hall now. I am a serious foodie and treat my friends very well. I'm sure that I could learn a great deal from you about our market. Who knows, maybe I could even let you in on some of my secrets of how I make my $$ outside of REI. Thanks again, if anyone else has any suggestions or guidance please feel free to chime in. I'll be sure to post more detailed questions as my research continues.

Hello everyone,

This is my first post, I've been a reader for about a week and now ready to ask a broad question. How should a first timer invest $80k in real estate?

First I'd like to thank the regular contributors for offering so much of your time to help us new comers, this seems to be a very supportive and patient community. I've recently decided to make my first real estate investment, I'm very excited but also a little overwhelmed. A little about myself, I'm an entrepreneur in my late 20s born and raised in Baltimore, MD. Strong construction background and handyman ability. Nearly 2 years ago I sold my company and liquidated my entire material life to travel around the world indefinitely. After 18 months on the road, I'm back in my home town to work on my new "life plan".

Here's my situation: I have $80k in cash that I'm willing to invest in real estate, around 75% of my total net worth. Excellent credit, never owned a home, former LLC owner. My monthly COL is very low, I own a houseboat with slip fees paid through the year, car paid off and my only expenses are insurance, cell and entertainment. I generate enough positive cash flow that keeps me in my lifestyle without dipping into my savings, some months even banking money. I'm in zero dept and have nothing but time to jump right into whatever property I buy. That being said, I would like to be ready to sell within a max of 2 months.

In a nutshell, my basic plan is to rehab and flip my first house. Then with the profits from the sale, purchase a cash flow property. This will allow me to maintain my current net worth, increase my cash flow and I'll still be able to purchase my restaurant/bar in paradise which is what I was searching for, for 18 months. Believe me I am fully aware that this is not a strait forward process, this is just my plan.

With so many options in my area, I'm not sure which direction to go in. I'm not out to make a huge profit off the rehab/flip. Optimistically, I would expect to net $25k-$30k. There are a large amount a short sales, foreclosures, auctions, etc, in areas that I am willing to purchase. This is where I'm unsure. Today I attended my first 2 auctions. They were Absolute and held on location. It was a great experience, the process seemed reasonably simple and the buyers will both certainly make significant profits which is encouraging. I've been getting great advice from friends and family who are doing or have made similar investments lately but I wanted advice from veterans who don't know me.

Where I'm mostly stuck is do I invest a large amount in 1 property that needs minimum repairs and is the safest investment? Do I buy a very low cost property that needs an extensive rehab but could potentially net higher profits. Do I wait for the right auction, buy low and sell right away for a smaller fast profit? Should I start looking for pre foreclosure occupied? Given the information I've provided, how would you invest $80k in real estate? Thank for very much for any advice, it's greatly appreciated.

John