Glen Cove, NY · Member since 2015 · 110 posts · 18 votes
Hello all,
I have already read about 5 "What would you do with 100K" posts. I own a merchant processing company and have a portfolio that I am looking to unload and would like to get my feet wet starting with 100K. I am learning as much as I can. I live in New York and therefor it is difficult to do ANYTHING with 100K so I am a bit nervous when it comes to pulling the trigger. I like some properties I have looked at online in Atlanta but am completely unsure of what to do.
Rental Property Investor · Mesa, AZ · Member since 2015 · 149 posts · 52 votes
10y
@James Ritter... Whoa, my new friend! You have been on the site for a day (according to your profile...). I think we all appreciate your enthusiasm, but I think a deep breath and a comfy seat (with a good internet connection) is in order!
From your dashboard, click on the "Education" tab at the top of the page, then go the the How To guides... read the Ultimate Guide to Real Estate Investing, first. I dont thnk anyone should even post on the site until they read this (yes, it's that important), but that's not the point. After reading that guide, since you think right now you are interested in rehabs, read the rehab guide. (Don't be surprised, though, if your strategy changes as you learn more). Each Guide has several blog posts and podcasts linked within that will give you more detailed information relative to the topic you are studying. SUPER VALUABLE, and FREE. Take a look at the names of the experts that are giving the interviews or that are very active on the posts... Follow them. Also, enter "Rehab" or "fix and flip" as key words in your profile so you are notified every time there is a new forum post started, and pay attention to the questions and answers.
Bottom line... First determine what you want to accomplish with real estate, and take a sniper's approach, not shotgun blast. Once you know what you want (goal), and how you will get there (strategy), then you will be ready to build your team that will help you succeed, and define your systems. Read posts by and podcasts with people that do what you want to do, and learn. Invest your time in the education before investing the capital. Go to Meetup.com and search REI groups in your area, and then attend a few meetings before writing that first check. This is a huge step, too, and not all REU groups are made equally, so join a coup,e if that is an option.
@Mary B. is right on! There will be many here and locally that will have great intentions to help you (while also helping themselves - and there's nothing wrong with that), but how will you know if they can deliver if you don't know what to ask; how will you know what to ask if you don't get an education? All the information on this site is free, so invest in yourself before pulling the trigger... Everyone is different, but I'd give it at least a coupleader of monthsNo sense making your own mistakes when you can learn from those that have gone before you! There is nothing new under the sun, after all!
Good luck, and welcome to BP!! Poke around a while here, and I look forward to reading about your success in the future! $100k is nice starting seed, so protect it now and watch it multiply later! Cheers!
Because I see the deals he does. I have seen/heard rent rolls, flip values, etc etc....
I want to start out smaller than that as the properties in the NYC area are much more expensive and I dont want to wind up getting burned on my first deal and have it be bad enough to make me never want to try again.
I have been searching around but am not completely sure where to find all of this info that I need.
Could I purchase say two homes in cash (100K) and take out a home equity loan to look for more properties while I let the Rent pay the mortgage (and hopefully generate a little income)? Where can I read more about this strategy, if it is one?
So that being said provides the most incentive as to why you need to take your time and learn the basics first before spending large sums of money. You may get offered an opportunity to spend $40K on a REI mentoring program but they won't be the type to hold your hand every step of the way. Then lets say you spend another $50K on the super advance delux course and after a 6-12 months, you don't know much more then a birddog. Now you are out of $90K and haven't close on one deal. You're discouraged, upset and totally feeling let down by then and as you've said in your own words, never want to try again. So why not take another avenue, find out who on BP is in your vicinity and connect with them. Perhaps meet for lunch and pick their brain. It can be more then one member, its not considered cheating ;-). Learn your housing market how the houses are valued per zip code / neighborhood. Find out how to properly run a Comparative Marketing Analysis(aka comps) by area zip codes / neighborhoods. Find out the rental variations on houses and apartments in your backyard. It doesn't mean that you have to buy in NYC / NY State but you need to learn and its the best place to start being as though its your backyard. Remember, this is a learning process and that's where your head needs to be now, not being so antsy like the money is burning a hole in your pocket. Not knowing what you're doing will only lead to an unsuccessful journey.
Here's an article on the Benjamin Franklin saying about great haste make great waste. It tells of how the brain doesn't make the best decisions when rushed. Check it out http://news.vanderbilt.edu/2012/11/haste-makes-was...
I have already read about 5 "What would you do with 100K" posts. I own a merchant processing company and have a portfolio that I am looking to unload and would like to get my feet wet starting with 100K. I am learning as much as I can. I live in New York and therefor it is difficult to do ANYTHING with 100K so I am a bit nervous when it comes to pulling the trigger. I like some properties I have looked at online in Atlanta but am completely unsure of what to do.
Looking for some advice!
As you're already a business person, I'm sure you know that making uneducated investments is a fast way to flush money down the commode.
A lot of folks will steer you away from education other than sifting through these forums and blog posts. Education doesn't "cost", lack of education does.
That said, if you can find a local private or hard-money lender who will mentor you, that might be one way to start. Learn how to use your money to make more money.
...or, connect with local investors and partner up on a deal with other investors and ask them to help you learn.
David J Dachtera
"Success is not a destination. Failure is not an event. Success is a process, failure is a choice." - DJ Benedict
Rental Property Investor · Oakalla, TX · Member since 2015 · 67 posts · 24 votes
10y
James I feel like I'm in the same situation as you are. I'm afraid to jump in and feel like I need someone to basically "hold my hand". I have many colleagues who have real estate in Brooklyn so I am trying to partner up w/ them or at least be mentored.
Rental Property Investor · Shawnee Mission, KS · Member since 2014 · 205 posts · 136 votes
10y
Don't spend any money with anyone for anything until you spend at least a couple of months on this site and doing other research on your own. Listen to the podcasts and read the recommended books. Be patient and strategic.
My own favorite strategy is BRRR for buy-and-hold. It's a thing - use the search feature to learn more about it. In the right market, with patience and good deal selection, your $100,000 can be preserved and you will build a rental portfolio. Best of luck.
I have already read about 5 "What would you do with 100K" posts. I own a merchant processing company and have a portfolio that I am looking to unload and would like to get my feet wet starting with 100K. I am learning as much as I can. I live in New York and therefor it is difficult to do ANYTHING with 100K so I am a bit nervous when it comes to pulling the trigger. I like some properties I have looked at online in Atlanta but am completely unsure of what to do.
Looking for some advice!
Hi James,
I live in the NYC market so I understand that your options are a bit limited with only 100k. I would not advise that you look as far as Atlanta to get started unless you are planning to move there. What I am currently doing is looking right across the bridge to New Jersey plenty of deals to be had there well within your 100k budget and you can always leverage private money and regarding mentors avoid anyone who wants to charge you upfront I belive 10-20K is the going rate. Experience is the best teacher but you don't have to go it a alone link up with some other investors who are focusing on the same market as you.
Investor · Atlanta, GA · Member since 2015 · 26 posts · 5 votes
10y
First off, I welcome you and wish you lots of success!!
1- You gotta find a seasoned investor, rehabber, flipper, that you can trust 100%. Gotta have that one guy to fall back on at all times.
2- If you go the flipping route, don't invest more than 50k first before you make a return on that money. A fix and flip can go either way... So if you loose it all at least you can get back up again...
3- I have some friends from NY that invest in nearby NJ. They do fix & flips and buy & holds. Very lucrative deals. Jersey city being especially hot now as it's close by to NYC.
Wishing you best of luck!!!
Atlanta, GA · Member since 2015 · 42 posts · 2 votes
10y
James Ritter
Atlanta would be the perfect place for you to invest your money. Work with me and I will mentor you making your money work for you. I will set up passive income for you as well as team up with you to monopolize the Atlanta market with your money. If interested, email me. Diego Howard.
Is it common to do deals so far from where you live?
Investing out of state is done, and done well, but it's a less than ideal way to get started. You really should learn the ropes locally where you can keep an eye on the property/partner/contractors. If you must invest out of state, find someone with a track record. Use a lawyer to structure the deal so you're as protected as you can be. Ask lots of questions here on BP.
What's keeping you from investing in your area or at least within an hours drive?
Atlanta, GA · Member since 2012 · 29 posts · 6 votes
10y
@James Ritter Welcome to BP. I spent 2 years studying the Atlanta market from my home in California and also closed 22 deals without leaving the beach. Was complex but a success. Now, I'm in Atlanta and having even more success. Any questions, just ask. 8138987254
Real Estate Agent · Austin, TX · Member since 2015 · 181 posts · 75 votes
10y
With $100K at hand, I prefer Buy + Hold. In Austin Texas market that could get you two income properties with modest capital appreciation. Slow and steady wins the race : ) .