Unique situation. Advice/Suggestion seeking.

Unique situation. Advice/Suggestion seeking.

New to Real Estate · Newark, NJ · Member since 2020 · 5 posts · 2 votes

Hello BP community, 

I am a Beginner investor and I have a unique situation. I know someone coming into a sizable amount of capital, wants to invest with me and have been wondering were to begin. We are interested in Buying a Multi Family to rent and generate cashflow but we are also Interested in the BRRRR method. Also, recently Short terms rentals are starting to look like a good move.


We listen and study a lot but are scared of the Shiny object syndrome that David and Brandon often reference. There is not much for someone in this situation that is usually addressed. Its usually either a Beginner starting out with very little capital OR someone experienced with capital but rarely someone who is a beginner with a pretty sizable amount of capital who is very serious with the real estate investment space. 


Any suggestions would be much appreciated. Brandon recently made a short YouTube video about what should someone do with 150k I think and it was very helpful but it's hard to find much content that is giving solid genuine advice without a sales pitch. 

Has anyone else had a similar experience? How did you get started? What problems did you encounter and how did you overcome or work around? 

I don't expect to be given any secrets but some advice would be much appreciated. 


Thanks in advanced and may you have a very blessed day. 

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Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
5y

Anybody can get shiny object syndrome. Doesn't matter how much money or experience you have. The most successful people say no to almost everything. Legitimately just had a conversation with @Paul Moore about this the other day.

The secret, I think, is to commit to one strategy and then ignore everything else. Once you've decided, cut away all distractions and temptations. If you go BRRRR, stop listening to or reading anything STR related that could distract you. If you decide to syndicate self storage, stop tempting yourself to get distracted by reading about land flipping (just a couple of examples).

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  • Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    5y

    Anybody can get shiny object syndrome. Doesn't matter how much money or experience you have. The most successful people say no to almost everything. Legitimately just had a conversation with @Paul Moore about this the other day.

    The secret, I think, is to commit to one strategy and then ignore everything else. Once you've decided, cut away all distractions and temptations. If you go BRRRR, stop listening to or reading anything STR related that could distract you. If you decide to syndicate self storage, stop tempting yourself to get distracted by reading about land flipping (just a couple of examples).

  • Member since 2021 · 37 posts · 39 votes
    5y

    @Taylor L. took the words right out of my mouth. You have to determine what your goal is and a strategy and then stick with it. then you can expand once you get things going with consistent success. You're not in a unique situation, it's just that most people don't have much money or don't want to spend much money to get started. You can use some of that money to flip 2 to 3 properties at a time and collect an immediate return once you sell. You can use some of that money to BRRRR 2 to 3 properties at a time for longer term cashflow and possible appreciation. It depends on your goals, strategy and your market. In some markets, that $150,000 would be a downpayment on a hard money loan for 1 property. In other markets, that $150,000 would be down payments on hard money loans for 2 to 5 properties. The answer to most questions is, it depends. Pick a strategy, learn it, implement it, get good at it, then expand.

  • Member since 2021 · 37 posts · 39 votes
    5y

    good bigger pockets video to check out

    ;list=PLgSUZKLPRI9uN56soaLQ7gg_cZTa26gtW
  • Newport Beach · Member since 2019 · 12 posts · 5 votes
    5y

    My first rental I bought brand new construction. It rented out in 5 minutes and I sleep good at night knowing every single thing is brand new. Honestly I highly recommend it. You can get a fixer for cheaper but once you start having major systems get run down it can ruin your cash flow. Also the benefit of brand new is there’s no bidding war. The price is the price. It was really Good for me for my first investment. 

  • Ben StoodleyBusiness Member
    Lender · San Diego, CA · Member since 2014 · 266 posts · 161 votes
    5y

    @Jamal King certainly agree with narrowing the focus to one asset class or investment strategy. Each idea you mentioned is a completely different ballgame and therefore completely different businesses (would need to at least hire many people).

    More importantly - does your investor have any experience with REI? Experience is worth more than any lump sum of money, especially at the beginning. I would personally consider partnering up with an experienced investor. Split some profits with them for a few deals. Learn what works and more importantly what doesn't work. One bad deal at the beginning can be devastating, one bad deal after numerous successful exits can be a simple lesson.

    Depending on how big the capital stack is, also make sure to diversify…. Good luck!

  • New to Real Estate · Newark, NJ · Member since 2020 · 5 posts · 2 votes
    5y

    Thank you to everyone for your responses. I read them multiple times. We will definitely look into a partnership and narrow things down. We know what we don't want to do, so that is a start.  

    I appreciate you all taking out the time to help me out and look forward to further Networking/knowledge building with you. 

  • Paul MoorePro Member
    Commercial Real Estate Fund Manager · Lynchburg, VA · Member since 2015 · 1k+ posts · 1k+ votes
    5y

    Hi @Jamal King. Whatever you do, I would focus very carefully, but consider diversifying that cash within your area of focus. For example, if you decide to focus strictly on passive commercial investments, spread the capital over several. Or if you’re flipping land, don’t tie up all the capital in one parcel. If possible. Happy investing! 

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