What should do a new investor with $50k in today’s market ?

Question

Hello everyone in BP.

I’m a new investor with 50k to start. I was hoping to start with 2-4 units MF but in current overpriced market how to find a good deal if you’re just starting and don’t have any experience or connections.

I was hoping to start with syndication but you have to be accredited investor.

What should I do?

How to invest if you’re not accredited investor?

Should I try private\hard money lending?

Please any suggestions would be greatly appreciated…. Thanks a lot!

Peggy Liu · Answer

@Igor Franjic  You don't need to be an accredited investor in a syndication.  However, you do need to be a sophisticated investor.

Sheldon Vic · Answer

I agree with @Theo Hicks. A house hack is a great start (especially for someone who is single starting out). FHA for 3.5 down should leave you with more than enough to do renovations, and sufficient contingency funds. Potentially would be roll into another deal with the right momentum (and numbers). On top of this I would delve into the education aspect of it; there is a small learning cure, but will pay out long term for the better (books, podcast, youtube, social media; steer clear of the "guru" courses, they'll wring you dry).

Igor Franjic · Answer

Thank you all for replays!

Currently I'm more interested in passive investing, syndication might be a good start for me.

Can anyone share syndication experiences ?

Any good education blogs/videos ?

Don Spafford · Answer

@Igor Franjic I would suggest finding someone to partner with. Syndications as has been mentioned will usually want both an accredited investor and often more than $50k. But $50k can still go a long way especially if put together with someone else's $50k to be able to together take down a larger MF deal. Having a piece of a great deal is better than 100% of no deal.

Allie Pfannenstiel · Answer

@Igor Franjic

I'm out in Phoenix. I have a friend who does a lot of syndicating here. She probably would know more about it. Also I think theres a seminar this week in LA going over that course.

Nick C. · Answer

Get a job in real estate. Use that $50k to live off while you're not making money. You will gain knowledge and then the money will start coming in. You can do one deal house hacking. If you have a job in real estate you will be exposed to much more.

Trevor Ewen · Answer

@Igor Franjic

Start networking remotely. Pick a few providers and start looking at their placement docs. When you are ready to do one, buy yourself a plane ticket and fly to the sponsor / investment. Even if for just a day, I think it's well worth the effort. Always amazed at the number of investors willing to put $100k in an investment, but can't spare the $300 plane ticket and a Saturday.

There's a lot of great markets out west, but it has been less an area of focus for me primarily due to distance. I would think landlord friendly states: Idaho, Arizona, Nevada, Utah would be good options to check out.

Theo Hicks · Answer

Hi @Igor Franjic,

Joe Fairless has a solid passive investing resource on his website. And I know Julie Lam at GoodEgg also has some passive investing resources on her website.

Igor Franjic · Answer

Thanks Trevor for the info!  I'm in Los Angeles....I have to look out of state syndication. Any tips ?

Trevor Ewen · Answer

@Igor Franjic

There are several very good deal syndicators on BP. There are also plenty that are not too active on BP. As an investor, I have found it's a bit easier if I am able to meet with them and understand something about their market. For instance, my first syndication investment was around 2 hours away from my home.

There are not many good deals in the tri-state area these days, but that was a great way to start the relationship building and get some experience vetting deal sponsors. As time goes on, you meet more people and get to look at more deals. People you meet on the forum and hear on the podcast are a great starting point, but you'll still need to do the legwork and reach out to them.

Where are you based?

What should do a new investor with $50k in today’s market ?

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