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Updated almost 8 years ago,
$1 million in cash. Where do I start?
Hi BiggerPockets Community,
I'm 31 years old living in the Northeast with $1 million in cash, a condo I own outright worth $300k and employed making $200k a year. My cash is currently invested in the markets and making a modest return in a low risk portfolio. I'm extremely lucky to be in a position where I have some flexibility and a good head-start on many of my peers. Although I've never been involved in the real estate industry (work in financial services), I come from a family that owns a 3rd generation design-build company so I feel like real estate has always been calling my name. I'm curious to know the everyone's thoughts on how I might dip my toe in the water of real estate investing? I realize I'll need to do a lot of research/due diligence before putting my capital at risk but would love any recommendations on how to get started.
GOAL:
My long-term goal is to start privately held real estate investment business and transition my focus to business on a full-time basis.
LIMITS:
Initially willing to invest 300k cash and leverage 300k in home equity.
QUESTION:
How do I turn 300k in cash and 300k in home equity into a real estate investment business? I realize I need to think about what dollar amount I would need to make each year. But for argument sake, what would be the best way to get the most value out of what I'm willing to risk?
Thanks in advance for taking the time to read and comment! I know I'm likely missing key pieces of information, so if you need more info, just let me know.
Alexander