$100k Cash to Begin Real Estate Investing

[Nick McCandless]

I have saved up a solid nest egg of cash that I am looking to get invested into real estate due to the many benefits that Real Estate provides like depreciation for taxes, mortgage pay down with cash flow, etc. I am not experienced with Real Estate and am not sure if I want to be landlord. I know there are other methods out there like Fundrise, but I wanted to ask the BP community what the most turnkey, least hands off real estate investing methods there are out there that typically provide the best returns and all of the benefits of real estate investing. Thanks everyone ahead of time!

[Ian Ippolito]

@Nick McCandless,  I invest in single-family rentals that I own, as well as Crowdfunding/syndication deals like Fundrise.  In my opinion, there is no perfect investment and they all have their pros and cons. 

It sounds like you are wanting to be as passive as possible. If so,  crowdfunding/syndication is the most passive way to invest.  

This isn’t for everyone, because you have to feel comfortable vetting sponsors and handing over complete control. But if you are OK with that, then you can enjoy certain advantages, such is much better diversification across properties, geography, etc. You can also invest in a lot more expensive properties then you would have been able to afford on your own, as well as many more different types of properties (for example, you are not going to be able to purchase much commercial real estate with 100 K direct).  You also can invest in debt in addition to equity, etc. which gives you a lot more options. 

The other downside with crowdfunding/syndications is that you do have to pay a fee to the sponsor. On the other hand, that fee does get you professional acquisition and  management with someone that probably has a lot more experience than you have.  If you are a newbie, then that can avoid a lot of expensive mistakes.