21 Year Old with $100,000 to Invest in Looking For Guidance

[Jay Richards]

Hello guys, I am young entrepreneur with zero experience in the real estate business. I have been in the eCommerce business for 2 years just stacking and saving all of my profits and I have $100,000 to invest. I just turned 21 years old so I'm looking to just park this money for 10 years and hopefully be very happy with it in 10 years when I'm 31. My first choice was to invest in Cardone Capital with Grant Cardone but by doing more research I discovered that RealCrowd and CrowdStreet have better investment opportunities. My question is that on CardoneCapital.com the Cardone Equity Fund has a preferred return of 6% and I can't seem to find a preferred return on any of the RealCrowd and CrowdStreet offerings however I do see the "Target Annual Cash" I was just wondering if "Preferred Return" and "Target Annual Cash" are the same? Also for those of you experienced investors, if you had to go back to age 21 and you have $100,000 to invest in, what would you invest in? Thank you all for reading this.

[Andrew Kerr]

@Jay Richards Welcome to BP! 

As @Saul L. mentioned, you need to be accredited to invest with Cardone Capital and the others. 

You need a place to live, so if it were me, I would do a house hack. Try to find a nice small multi-family place. Use an FHA loan, so you won't need to use all your capital. Then rent the other units, and get a roommate for the unit you are living in as well. Make your housing costs go to zero. Then this will let you dip your toe into owning a place and managing tenants. Then while you are living free, keep saving money and learn like crazy before you go into your next deal.

Then I would also look at doing a new house hack every 1 1/2 to 2 years. Being 21, if you did this 4-5 times, and only did this, you could be really set by the time you get to 30.