What would you do with 70k cash during Covid?

[Marcus Palm]

Just wondering what would people do right now if they had 70k cash on hand. Where would you invest it? Would you just leave it in a savings account for now?

[Zach Lemaster]

@Rachel Santos

I'll let @Joseph Schweizer speak about his personal experience, and cash flow that he is achieving. Since you've mentioned you were looking for more people's experience with TK, I've posted some good forum links below that should help you get a better idea of investors experience going that route. Jason brought up the brrr method, but what everyone fails to mention is that strategy can involve significantly more time, risk & money. It can be a productive way to increase equity, but if you are a newer investor, or looking to invest away from where you personally live, then I would not recommend that strategy for someone who is just getting started. Just because you attempt a brrr, does not mean you are guaranteed equity, or that everything will go as planned and turn out the way you anticipate. Just be prepared for that if you attempt your own flip as it is very time intensive, has many working parts involved, and there are a lot of variables. I will be the first to tell you from the perspective of someone who flips or brrrs professionally & has done 3,000+ homes over the past ten years, very rarely does everything go as planned to work out perfectly, and this can very easily become another full time job! The variability of unforeseen rehab, missed calculations on ARV, extensive holding costs, delays in completion that become rather costly (especially if using hard money), market changes, permitting issues with the city, unknown title issues, potential vandalism/theft on vacant units, dealing with contractors & other trades that don't complete work to standards, or have to be fired, etc. the list goes on & on. I'm not trying to discourage the brrr strategy as that is essentially the business we operate in, but it is important to know what this strategy truly involves, and the risks associated with it. Many people on BP fail to mention those aspects, or are not actual flippers themselves to fully understand the process. Most people lose money on their first few flips, which is fine if you learn from that experience & keep going, but unfortunately many people call it quits after those first few expensive lessons. There is a learning curve like any new endeavor & sometimes you simply don't know what you don't know. This is why I feel a TK investing is an excellent place to start for a newer investor where you tap into an immediate team & network to take an easy entrance into investing with a higher propensity for success to learn the ropes. This will allow you to become familiar with a market, and start to build your own network leveraging the experience & team that we have already built successfully for many years. As you become a more experience investor, you can then decide if you prefer to take a more active role to attempt some of your own rehab jobs, or simply scale up your rentals via TK investing like you already have been & diversify across multiple markets. TK allows you to likely scale much quicker than you could achieve on your own, and you have immediate access to a team that has a proven path to success to guide you throughout the process which really is more valuable than the property itself in my opinion. I digress...and will get off my soap box, but the last point I'd like to make is that there is no reason in the world you can't do multiple strategies over time as you become a more experienced investor. Many people think there is this brrr vs turnkey, when in reality I think employing both over time is the best approach depending on your goals. It just depends where you get started, and that you DO get started. Don't let analysis paralysis prevent you from taking action like it does for so many!

Rachel, if you have any questions on anything I discussed please let me know.  Below are some forum threads to read that will allow you to see more investors experiences buying TK properties.

https://www.biggerpockets.com/users/ZacharyCole/references

https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/forums/92/topics/893621-rent-to-retirement-review?highlight_post=5222888&page=1#p5222888

https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experiences

https://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkey

https://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zach

https://www.biggerpockets.com/forums/48/topics/874096-reviews-on-r2r-and-nch?page=1&utm_source=Iterable&utm_medium=email&utm_campaign=Transactional:%20topic_notification&utm_content=Transactional#p5123754

https://www.biggerpockets.com/forums/311/topics/883772-turnkey-investing-renttoretirement-feedback-reviews?highlight_post=5171720&page=1#p5171720

https://www.biggerpockets.com/users/ZacharyCole/references