What would you do with 100k?

[Joshua Martin]

Hey gang,

  I saw this post last week (on BP) about Grant Cardone saying you should wait to invest till you have 100k, and I agreed with all of the posters regarding starting as early as possible with whatever you have. So, whatever Grant...

  But it had me thinking, what would you do with 100k? Would you jump into commercial property with that chunk of change? Or go for multi-families? Or, like anything, it'll be an investor preference. 

  It just had my mind going, because the deals I'm getting into right now require no to low cash.

Best,

JTM

[Scott Hollister]

Hello @Joshua Martin, 

I have two quotes in front of my desk that I look at from time to time that might help you answer this question. 

• Two Rules for Making Money
  • Rule #1 Never be Emotional 
  • Rule #2 The greatest opportunity for gain or loss come when other people forget rule #1

• True Wealth is turning $1 dollar into $2 dollars 

Before I can answer that question you must know my background. I have done a house hack, a BRRRR, and I am now working on a flip. So I have to make my decision based of the knowledge I currently have at hand. (Like you said, investor preference) 

I would buy 5 REO properties in my area at 100k each and leverage that money. I would partner with a hard money lender at 90% of purchase price and have them cover rehab costs. Once done, rent out the houses and have the tenants pay the interest to the hard money lender. Refinance out at 80% LTV and hopefully make some money.

$$$ Now you have 5 Cash flowing properties in 6 months and over 100k in the bank. $$$

• Is it high risk? Yes. (Better have some reserves) 
• Can a normal person or newbie handle 5 houses at once? Ehhhh better to start with 1-2
• Do you need connections? Absolutely
• Are people going to tell you it can't be done? YES, but screw them. If you're passionate enough and you want it bad. ANYTHING is POSSIBLE 

Keep building your cash reserves and then move it into large multis down the road!