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Category: Finance and Credit Current Grade: A- Total Views: 520 Member Comments: 2 |
Posted on: 03/22/2008 Posted by: pacneil Blog Points: 54 View all blogs >> |
I'm looking for opportunities and I think I found one. Challenge is, I have all my capital tied up in a property that hasn't yet sold. I don't have to tell you how hard it is to move properties in this market. I'm pulling out all the stops marketing the property. Ads in craigslist. Postlets listings through all the various sites they cover. Listing on rehablist.com, a direct mail campaign to realtors that serve the area where my house is. I'm offering terms, lease option. I know it will move soon, I'm optimistic. But in the mean time, I want to start another project. I want to build momentum.
I'm working on some strategies to wholesale some homes. I've spent some money on a direct mail campaign and I have a small buyers list. I also started marketing for some sellers, direct mail to absentee owners and a "buy your house" post on craigslist. All small dollar stuff, because I don't have a lot to spend, and I don't have cash flow right now. It's early but I've gotten no response, so far.
I have an LLC set up, that I want to use as my vehicle. I've been researching how to get credit for an LLC and it looks like it's about a 2 year process. My LLC is less than a year old and has no credit. I have a good credit score, but don't want to put anymore loans on my house, for investing. So, I'm looking for some creative suggestions about how to get about $20K unsecured to start my next deal.
I'm sure there are many others here that are looking for creative ways to get money to get them started. Anybody found something that worked for them?
Vieving 1 - 2 out of 2 comments
Posted By: JohnCorey on 03/23/2008
I agree with Tood's point concerning having less money makes you think harder on how to do deals.
If your marketing is well organized you will always have times when you lack cash to do the next deal. That is why it makes sense to continue to grow your lists, your capital and your creative solutions.
Focus on selling quicker. If that means using lower prices or seller financing that could be a good way to go. You would be making up in volume what you lose in terms of profits on any one specific deal. The investor buyers will be quicker to do deals with you as they will know you price them right.
John Corey
Posted By: MillionaireCoaching on 03/22/2008
You want to raise money, but don't want to borrow against the house ... hummm.
I would say a couple of options. One being establishing credit with some local bank to build up the ability to do signature loans. However that can take some time to do.
The other would be to (since you have good credit), get a number of credit cards and use cash advances for deals. However BE VERY CAREFUL! Even with the high interest on these cards, if you are using the money wisely and getting a greater return than you are paying out, you are coming out ahead. Use caution though any time using credit cards like this.
My big question would be ... "What do you need the money for to invest?"
You seem to be on track, talking about doing wholesaling. You don't need money to do wholesaling. Get some good deals under contract, assign them to an investor, home buyer, or double close it.
One thing about starting out without money ... it makes you get more creative as an investor.
Todd
