How would YOU invest $100k (if YOU were ME, that is)

[Scott Malkin]

Hello everybody, was curious to get some general insight / varying opinions from seasoned investors about real estate investing strategies as they relate to my particular situation. (Also not opposed to very specific advice either).

Ok, for starters, let’s assume I have $100k cash to invest in real estate (ideally multi-unit properties). Let’s also assume I have adequate cash reserves beyond this as well as a good income (vague, I know, but let’s just assume I don’t walk around with a sign stating “OCCUPY! I AM THE 99%).

Also, I am not looking to spend a lot of time managing this beyond the initial research, due-diligence required, etc for initial investment(s) and further acquisitions down the road as the climate dictates (ie, real estate investing won’t be my full-time job). Furthermore, I am not necessarily looking for cash flow in the short-term (apart from, of course, having adequate cash flow to cover debt service/ property management/ repairs/ vacancy, etc, etc). Looking more towards long-term capital growth followed by high cash flow down the road (10-20 yrs or so…).

Let’s also assume property location doesn’t matter in so far as the plan is for them to be professionally managed (ie, Texas vs Vegas vs Beverly Hills doesn’t matter so much but prefer not to invest in ‘war zones’)….

[J Scott]

Well, if you don't have much experience, and you're looking for an investment where your biggest time investment is in "the initial research, due-diligence required, etc," then I would suggest finding an experienced and successful investor who needs capital, and partner with him/her.

Unfortunately, it's going to be tough to have such a limited role in the investment (especially with limited knowledge/experience) and still be successful on your own. Be the cash guy and find someone who can bring the rest of the pieces of the puzzle.