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Updated 7 months ago on . Most recent reply

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Sarah DeMamiel
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$400,000 To flip or to brrrr? Or both?

Sarah DeMamiel
Pro Member
Posted

I have $400,000 to invest for my mother. She is older and would like to have an opportunity to have higher returns on her money at this point in her life. We were initially looking to flip homes, which would potentially bring higher immediate cash returns for her enjoyment in her later years, however I’ve been researching the brrrr method as well to generate cash flow without the stress that flip process may cause her. Supplementing her SS with rental cash flow income may be enough for her to go enjoy life to the fullest AND leave the legacy for her kids and grandkids after she’s gone (that’s also very important to her). 
any thoughts, experiences and nuggets of wisdom are welcomed!

  • Sarah DeMamiel
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    Jonathan Greene
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    #5 Starting Out Contributor
    • Real Estate Consultant
    • Mendham, NJ
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    Jonathan Greene
    Professional Services
    Pro Member
    #5 Starting Out Contributor
    • Real Estate Consultant
    • Mendham, NJ
    Replied

    You shouldn't do either of those with your mother's money unless you have the experience in real estate investing. Both of those models involve potentially comprehensive rehab to make a good return and new investors often hire the wrong people and spend way too much.

    Higher returns on her money can be found in debt fund syndications which are totally passive and can pay 12%. If it's your mom's next egg, you don't want to take risk that is not fully educated.

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