$50k to Start Real Estate Investing

[Nick McCandless]

I have $50k in cash set for investing in real estate. I want to get into the world of real estate investing to use leverage to not only generate cashflow, but also have others paying my mortgage building equity, but also allowing me to generate profits off a larger amount than I have due to loans that are also paid off by the renters. I have been doing a lot of research, but wanted to ask the BiggerPockets community how you would get started with $50k in cash ready to invest. I currently live in Orange County so its not possible currently to get a place around here, but am open to hearing suggestions.

[Chris Clothier]

@Nick McCandless - You need to hold onto your money for now and find a local or even close-by mentor to learn from.  Reach out to @Bill Manassero and see if you can buy him a cup of coffee and pick his brain.  Read up on everything posted by @Aaron Mazrillo who is close by to you.  He is proof that you can use that money right there close by like the inland empire instead of going out of town.   Neither of these people will tell you that buying 2 or 3 cheap pieces of crap in the midwest are a good investment.  Read up on @Ben Leybovich  to understand how quickly that $50,000 investment can go south when you try and spread it into too many deals.  You are much better off spending that many on the highest quality deal you can find and you should be able to find a deal close by.  If you don't want to be hands-on then listen to the advice of Bill and remember what lessons Ben teaches before you buy.

Look for high-powered real estate events such as the one in the San Fran area later this year being put on by @J. Martin .  These are the places where you are going to meet the right people and get a chance to spend your $50,000 wisely and according to a plan. I hate that you are getting hit up with sales pitches, but it is going to happen more and more as you tell people you have money, but you probably expected that.  

Your best bet right now it to stop researching and start taking a few actions to get yourself surrounded by smart mentors or experienced investors who are willing to be a sounding board as you get started.  I did like what @Alex Craig suggested that you either lend or come up with another way to build your initial capital.  You definitely want a way to keep growing your capital. 

 Best of luck -