What would you do with 300k cash?

Question

Need advice on where to start

Jaron Walling · Answer

Account Closed The BP forums are full of information. Don't be afraid to search for topics before starting a new post. Someone posted the same thing last week! Good luck. https://www.biggerpockets.com/forums/311/topics/813050-what-would-you-do-with-300-000-cash

Chris Soignier · Answer

I'd invest $100K each in 3 solid multifamily syndications led by sponsors I know, like, and trust.  If I was just starting out, I'd probably divide it into 6 $50K MF deals to achieve better diversification of markets/submarkets and deal sponsors.

I also question the desire to pay off investment-related debt in this time of record-low interest rates. You definitely don't want to over-leverage, but this is a historically great time to borrow money on cash-flowing assets, and leverage is the special sauce that can transform real estate from merely cash flowing to multiplying your wealth. Instead of paying down leverage over time, I'd look into cash-out refinancing as appreciation becomes significant and rolling the proceeds into acquiring more cash-flowing real estate assets.

Evan Polaski · Answer

Account Closed So it sounds like you want to be an active investor, with very little leverage.  Depending on your market, you are likely going into single family, up to 4 family.

Is there a specific reason you want to be debt free in 5 years on investment properties?  I completely understand the freedom being debt free provides, but typically for a real estate investor debt, particularly long term, low interest debt, is our friend.

Marlen Weber · Answer

Account Closed You're at the right place for great advice on what to do next. Best of luck on your journey.

Evan Polaski · Answer

Account Closed, as mentioned a lot more information is needed.  What is your end goal?  What type of life are you wanting?What is your timeline? Are you wanting to be active or passive to make it grow? Are you an accredited investor or not?

There are a lot of options, but what I would do, or @Greg Dickerson would do could be vastly different then what you want.

But very basic options: join a syndication, buy a handful of single families, do a few fix and flips.  These are what I would say are the most common "I have some money and want to start investing in real estate" strategies.  But I highly encourage you start doing research on each.  Syndications take a certain level of sophistication to understand.  Single family rentals can be hard to scale and find good management for.  Fix and flips have a lot of risk when the market turns, or you open up walls and don't understand construction and pricing.

Account Closed · Answer

@Evan Polaski how ever long it takes. I’m in for the long haul. How ever long it takes. To create cash flow

Account Closed · Answer

@Evan Polaski I am accredited investor. My goal is to buy/ rent out property. Pay it off in 5 years or so. Then after just collect the cash flow.

Roni E. · Answer

First I would see what type of real estate you like. It could be apartments, Industrial, office or retail. I would then look at the reports from CBRE, Marcus Millichap that talk about each real estate type. I would process a lot of information to make a wise decision and then triple-check that wise decision. I would keep $50k as a rainy day fund. I would get Michael Blanks SDA course. Once you pick a real estate type could recommend some books and podcasts.

John Fortes · Answer

You are asking for advice but it's all going to come down to what ever direction and decision you choose to go in. Only thing I can confidently say is, what ever you did to earn it, keep going and keep earning. We go through three phrases of our life. Learning and growing, to earning, to retire.

As far as investments, I like everyone else, can give you our personal opinion from the prospective of our current life and how we see things. Maybe you see things just a bit different so take the information you receive and keep what you think can help you.

Happy investing!

Caleb Brown · Answer

Bread and butter I preach to investors is value add then recycling your money into other value adds. At the end of the day you can learn/ask all you want but we don't know your goals. Write down 1,5,0 year goals then pick a strategy that fits. Best of luck!

What would you do with 300k cash?

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