24yrs old with $750k to invest

[Adam Tahir]

Hi all!

I’ve loved learning about real estate for the last couple of years, and I am blessed enough to be able to put a large sum of money into my first “real deal”. So far, my strategy is to target multifamily properties (cash flowing) with 25+ units. I want to stay within the 6-8% cap rates, and target value-add properties (Chicagoland area). I'm thinking that properties be at a discount in a couple months once the market catches up to everything that has been happening. What would you do if you were in my position?

On another note, I'm in the preliminary stages of reaching out to brokers/lenders to build relationships etc. I'm getting sent deals through the pipeline, and find myself struggling to properly analyzing the deals. Part of me is looking into a deal analyzer, but I want a firm grasp on what's happening behind the scenes before I blindly input numbers. I guess my question would be how do I estimate current metrics? For example, how can I estimate rehab costs, CapEx costs, closing costs, etc? I'm looking for any resources that actually walk through the entire analysis - not just a quick video looking at NOI and Cash-flow but how they obtained certain numbers/metrics.

Again, I'm very blessed to be in this position and would love everyone's input!

Best,

Adam

[Brian Garrett]

Don’t announce having $750k cash on a public forum and ignore all of the colleague requests and messages you get with “deals and opportunities” as these will be from people looking to spend your money on what benefits them rather than invest it in what benefits you. Put your money somewhere safe for now (I.E. high yield savings account) while you learn and get comfortable analyzing deals.