I have 75k AND NO IDEA what to do.. I NEED HELP BAD....

Ok…i have about 75k in cash saved and i want to get in real estate investing… Thing is my credit is trashed.My credit score is about 460… i only owe about 10,000 in debt. Im so confused in what to do. So far ive been reading that i should buy a house for rent x 30. So if i want at least 600 rent on a property i should buy it for 18,000?? I have no idea what course to take. Anyone have any suggestions and yes i new but i have been trolling for a while. Thanks for any INPUT!

Put that money in the bank and don’t spend a penny until you have a plan. If you want to get into the rental business, then read EVERY post in the rental forum - that would be a good start. Then, go look at 100 houses that are for sale in your target market area. That will help you learn your market. By then, you should have a good idea what you need to do!

Good Luck,


Propertymanager thanks for the advice but i seen your post numerous times so i know you know what your talking about. Ive done that though. I looked at houses but things sometimes look overwhelming. Should i go by the rent x 30 idea?. I actually want to buy a property soon but have no idea going about it. I know i should look around see a property that is lower then the average selling price of the house correct? Then put a offer in , see what my cost are to fix it and what not then try t rent it out. Is it that simple?

If you want to learn about rentals you should buy property manager’s book. It’ll tell you everything you need to know.

What I would also do is pay off that 10k in debt first. Why are you holding it if you can pay it off with out a blip to your savings?

Cause dont i need all the cash i can get my hands on… I didnt want to blow it putting 10,000 into my credit

Should i go by the rent x 30 idea

Buying at rent X 30 is buying at a fantastic discount. Buying at rent X 25 would be even better and rent X 20 would be better yet. If you do some reading about the 2% Rule and 50% Rule, you will understand my thoughts on the matter. In my experience, anything under rent X 50 (less rehab) is worth looking at. Then you need to do a cash flow analysis to see if the property cash flows. I won’t buy anything that doesn’t cash flow $100 per unit per month using real world operating expenses (50% Rule).

The reason that I suggested reading every post in the rental forum is that you said you were “so confused”. If you spend the time to read the hundreds (or thousands) of posts in the rental forum, that should help clear up the confusion. There is no shortcut to becoming educated on the business! Ignorance of the business will almost certainly cause you to lose the money you have as your business fails!!! The other significant issue you have is that your credit is HORRIBLE! You’ve got a nice pile of cash, but you REALLY need to work on that credit score. In the rental business, you need some money and excellent credit to really be successful. Yes, there are ways to buy property without having good credit, but it’s going to be difficult to build a successful rental property business without it.

Good Luck,


From a personal finance side of things, how about paying off your 10,000 in debt? get into a credit repair program for a couple hundred bucks and you’re well on your way to getting your credit score back up to respectable levels. combine that with all the left over cash you’ll save from not paying interest on that ten grand and you’ll be golden!

I could use $75k.

But if you arent sending it to me, put it in an interest bearing account and build a network and strategy.

Aside from where to start on investing, I think it be valuable to explore your current credit situation. Looking into credit repair would be great. Do not go over board. Do not pay $1000 to someone to fix. Do not get stuck in the $150 a month till fixed. You want a flat rate and decent, maybe $500 max depending on how many bad accounts.

Now first you can try and clear it up yourself. Many people do not realize , a bad account will drop off your credit report after 7 yrs from the date of the last payment made. Any of those bad accounts in that range. Many accounts that atre 4+ yrs old will come off with a basis not mine dispute done online thru each credit agency website when you oder the report and dispute items. Creditors in general only keep files for 5 yrs, not 7yrs. Computer systems only back up for 5 yrs as well, however some do keep charged off accounts longer.

Now maybe you owe small amounts. Call the creditors up and work with them. Say you had a $2000 account charged off 3 yrs ago, they gave up on funds but banks want $$$$$ today. Offer them $400 to update file to R1, no lates, paid in full or to give you a hard deletion and you want it in writting.

Banks will work, some will not, depends on how much you owe and pissed them off. Besides all they can say is NO, will not hurt.

Work on your credit… If you like post the bad tradelines here or PM me what u have, balance and date last paid and who. I give you some tips…

A very influential individual once gave me a good strategy anytime you are lucky enough to get a raise or come across a sum of money. While most people spend 90% of it this strategy works much better.

1/3 spend
1/3 pay off debts
1/3 invest

If don’t have debts
1/2 spend
1/2 invest

If no need to spend
100% invest

Now the question of where and what to invest in. I’m sure you will hear various recommendations. I am a believer in real estate. If you do not have time or are not comfortable finding, doing and exiting a deal yourself then I recommend you find a credible investor with a successful track record and partner/invest with this individual/firm.