Basic Financial Questions

Ask David ForumCategory: House FlippingBasic Financial Questions
Joe Bruno asked 9 months ago

Hi, I’m curious about my current financial situation. About a year and a half ago found me in a very bad spot. I became upside down, creating substantial debt. I have climbed out of all of it and created payments for some substantial hospital bills. I also bought a vehicle outright, and we moved out of state to Florida. I have a wife and 4 children. One more is due on November 8, 2 days away. I am a cabinetmaker, making $2,600 per month. My monthly bills are $3,261, excluding savings, debt payoffs, etc. The only way possible for this situation to work is that I consistently work overtime and earn an additional $1,800 net per month. I owe $4,000 in credit card debt, $2,000 on a charge card, which I just recycled money this month to pay it off and borrow against it again. My initial strategy was to get into real estate investing as a way to replace my current income as a house flipper, but I have no experience at all, besides the fact that I can fix everything in a home, besides major roofing. If I continue on this path, I should be out of debt in 6 months, excluding monthly recurring arrangements. My credit is not good yet, as I just established a credit “identity” almost a year ago and haven’t really worked at it very hard.
I have a few thoughts but sorting them out to find the best option.

  1. Pay off the debt and create a savings to start. If so, how much should I save to get into flipping homes in my area (Ocala, FL)?
  2. Pay down the charge card only, create a savings to start.
  3. Partner with a “mentor” as I get the feel of a deal and what to expect. I also have a friend who would lend 20k for a good deal.

Maybe, these wouldn’t even be the best options, but I would like to be able to overcome our current situation and have some financial breathing room.
I noticed in a Bigger Pockets article that you mentor people as well. If this would be a possible solution, I’d love to investigate for our situation as well.
Thanks and God bless.