Have $300k to get started. Need advice. Where do I begin?

[Andrew B.]

Hi everyone! This is my first post, but my wife and I are long time lurkers. We are in our mid twenties, and just paid off our mortgage. We know we want to invest in real estate. Our issue is we have no idea how to get started. We are planning on either cash out refinancing our home, or opening a HELOC. This would give us around $300k to get started with based off a 75% LTV.

What’s the best strategy? Single Family? Multi-Family? Apartments? For my area, Saginaw/Flint.

Is flipping homes a better route?

My family owns a real estate firm, so we have those connections already.

What should our plan of action be, based off your experience. We’re new, and we want to start off on the right foot. Tapping into you guys seems like the best first step towards success 🤗

[Bill F.]

@Andrew B. First off Welcome to BP. 

I'll give you the almost exact answer I gave about 15 minutes ago to someone who asked what they should do with $100k.

Step 1: Don't post your full name and any amount of money you have on an indexable website. Since that ship has sailed, I'd go into settings and make it so your last name doesn't show. With questions like this, there is a strong tendency for people to answer who have things to sell you and may place their best interest above yours.

Step 2. Use the search bar to see all the other times this question has been asked and answered:

What do I do with $250k

I have $300k to invest

Step 3: Figure out why you want to invest in Real Estate. Is it diversification, cash flow, to build wealth, quit a job, retire early, but a kid through college...

Step 4: Get a surface level understanding of the various niches of REI. From live and flip, buy and hold, turn key, notes, syndication, self storage. There are tons of ways to get involved that are off the beaten path of renting a single family home.

Step 5. Do an honest self assessment of what you like/dislike doing and what you are skilled/not skilled at.

Step 6: Take what you have learned in steps 4 and 5 to rule out things you can't/ don't want to do. If you hate dealing with people, buying and self managing 10 SFRs probably ins't a good life choice. What you are left with are the possible options for you to explore further.

Step 7: Pick an avenue and commit to finding an asset to purchase.

Best of Luck.