Originally Posted by ARFNSX
yes. keep as much liquidity as possible, you might need it. BUt you mentioned buying at the court house steps, they require you to have cash for that! but, if you get it from a private seller you could do an Option ARM loan, becareful, make sure u understand how that works befor signing papersthere are pleny of other routes if you buy from anywhere but the courthouse steps. and yes, 20K is enough to start a few small projects. I am not sure how the banks like the ROI on these small projects your talkin about. But all the ones i deal with, banks love the 30% ROI range
(food for thought) thats how i usually judge the inital potential of a project. good luck. oh and for the most part "use other peoples money" like the person i quoted said But like anything, rules are ment to be broken, so dont take that to heart.
lamar, your thinking way to long term. if he was to do an Option ARM loan, yes he would even come close to touching the principle. BUT, he ROI should be much great than his investment + intrest. And if your only planning for 10% ROI, that just seems crappy and unsafe, but then agian, i dont do these types of projects, i do land development.
I hope the above made sense, i have been working all day and then had a night class, so my brain is a little fried and my spelling and grammer are probably not up to par. sorry.