Best Strategies to MULTIPLY $100,000
Investor · Knoxville, TN · Member since 2018 · 8 posts · 1 vote
Hi, I recently moved an IRA I have into a Self-Directed account and would like to make a my next real estate purchase soon. I've always dealt with long-term rentals and these assets, although great, are generally long-term and slower producing. SO, I'm looking at some alternative strategies that will do two things for me:
1. Create high cash flow.
2. Allow me to multiply and scale my business over and over again without having to make additional investments of my own capital.
In other words, I'd like that $100,000 to launch me into a domino effect where I don't have to add additional capital. I'd like to hear how you have or would successfully use $100,000 to multiply returns over and over again. For instance, I know the BRRRR method works for a lot of people, but I'm also looking at ways to partner with others, short-term rentals and any other strategies out there that will set me up to not have to put more of my money in, while continuing to scale my business with the initial investment of $100,000. Any and all thoughts are welcome!
Hi, I recently moved an IRA I have into a Self-Directed account and would like to make a my next real estate purchase soon. I've always dealt with long-term rentals and these assets, although great, are generally long-term and slower producing. SO, I'm looking at some alternative strategies that will do two things for me:
1. Create high cash flow.
2. Allow me to multiply and scale my business over and over again without having to make additional investments of my own capital.
In other words, I'd like that $100,000 to launch me into a domino effect where I don't have to add additional capital. I'd like to hear how you have or would successfully use $100,000 to multiply returns over and over again. For instance, I know the BRRRR method works for a lot of people, but I'm also looking at ways to partner with others, short-term rentals and any other strategies out there that will set me up to not have to put more of my money in, while continuing to scale my business with the initial investment of $100,000. Any and all thoughts are welcome!
Software Venture Capital Business has the highest IRR possible with medium-high risk investment in my eyes.
Or ..... operate a donut shop in nice intersection, and selling milk tea :)
Private Money Lender !
Fix n flippers need you to fund their deals and you can charge 10-12 % interest for a 3-6 months time frame, then pull the money back out, REPEAT.
Wholesaler's need you to fund their closings so they can assign their deals in states that require assignment disclosures .
You can be an investor in other people's short term or long term rentals and request an equity position in the property.
Let's connect ! I'm always looking for Private Money Investors
Why did you move your money into a SDIRA, in order to invest in RE? How much research did you do before you did this? I don't mean basic research that tells you all the positive reasons to do this,...I mean research that tells you all the problems, limitations, rules for what you can/can't do, and obstacles associated with this.
Hi, I recently moved an IRA I have into a Self-Directed account and would like to make a my next real estate purchase soon. I've always dealt with long-term rentals and these assets, although great, are generally long-term and slower producing. SO, I'm looking at some alternative strategies that will do two things for me:
1. Create high cash flow.
2. Allow me to multiply and scale my business over and over again without having to make additional investments of my own capital.
In other words, I'd like that $100,000 to launch me into a domino effect where I don't have to add additional capital. I'd like to hear how you have or would successfully use $100,000 to multiply returns over and over again. For instance, I know the BRRRR method works for a lot of people, but I'm also looking at ways to partner with others, short-term rentals and any other strategies out there that will set me up to not have to put more of my money in, while continuing to scale my business with the initial investment of $100,000. Any and all thoughts are welcome!
Software Venture Capital Business has the highest IRR possible with medium-high risk investment in my eyes.
Or ..... operate a donut shop in nice intersection, and selling milk tea :)
I agree with @Joe Villeneuve and hope a fair amount of market research was conducted. In my opinion it's nearly impossible to "scale my business over and over again without having to make additional investments of my own capital." That's an investor dream world. For expert investors it's different but that's not been my experience. We have capital trapped in our properties and we like it! It's equity and protection against the downside.
I agree with @Joe Villeneuve and hope a fair amount of market research was conducted. In my opinion it's nearly impossible to "scale my business over and over again without having to make additional investments of my own capital." That's an investor dream world. For expert investors it's different but that's not been my experience. We have capital trapped in our properties and we like it! It's equity and protection against the downside.
@Joe Villeneuve We have only completed live-in flips and BRRRR deals and maximized the capital we had at the time. The numbers you mentioned are very similar to Indianapolis. I'd love to pull equity and spread it around but given our low fixed rates that makes zero sense. It's becoming clear a lot of mid west "cash-flow markets" are no longer cash-flowing. It's an appreciation play. If we could buy more properties in specific neighborhoods, break even, and not jeopardize what we already have I'd do it.
Why did you move your money into a SDIRA, in order to invest in RE? How much research did you do before you did this? I don't mean basic research that tells you all the positive reasons to do this,...I mean research that tells you all the problems, limitations, rules for what you can/can't do, and obstacles associated with this.
I did about 3 months of research, talked to numerous investors and providers of self-directed retirement accounts.
The reason I went this direction is because it's the only way to have checkbook control of my retirement funds in order to use it for real estate. I'm surprised you haven't heard of this vehicle before.
Private Money Lender !
Fix n flippers need you to fund their deals and you can charge 10-12 % interest for a 3-6 months time frame, then pull the money back out, REPEAT.
Wholesaler's need you to fund their closings so they can assign their deals in states that require assignment disclosures .
You can be an investor in other people's short term or long term rentals and request an equity position in the property.
Let's connect ! I'm always looking for Private Money Investors
Yeah, I've thought about becoming a private money lender. I'd be up for a conversation for sure. I'll send you a friend request.
I've also thought about partnering with someone in exchange for an equity position, but because it's a retirement account, there are regulations that I don't necessarily think a partner would want to follow.
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I agree with @Joe Villeneuve and hope a fair amount of market research was conducted. In my opinion it's nearly impossible to "scale my business over and over again without having to make additional investments of my own capital." That's an investor dream world. For expert investors it's different but that's not been my experience. We have capital trapped in our properties and we like it! It's equity and protection against the downside.
Why did you move your money into a SDIRA, in order to invest in RE? How much research did you do before you did this? I don't mean basic research that tells you all the positive reasons to do this,...I mean research that tells you all the problems, limitations, rules for what you can/can't do, and obstacles associated with this.
I did about 3 months of research, talked to numerous investors and providers of self-directed retirement accounts.
The reason I went this direction is because it's the only way to have checkbook control of my retirement funds in order to use it for real estate. I'm surprised you haven't heard of this vehicle before.
@Joe Villeneuve We have only completed live-in flips and BRRRR deals and maximized the capital we had at the time. The numbers you mentioned are very similar to Indianapolis. I'd love to pull equity and spread it around but given our low fixed rates that makes zero sense. It's becoming clear a lot of mid west "cash-flow markets" are no longer cash-flowing. It's an appreciation play. If we could buy more properties in specific neighborhoods, break even, and not jeopardize what we already have I'd do it.
@Stephen Grindle if you invest inside a IRA you can't touch the cash flow without dealing with the IRA restrictions.
Also getting loans inside an IRA is difficult and more complicated so the BRRR would be difficult. If you are open to partnering I would just look at being a lender out of your IRA and be a debt partner. If you are looking to live off the cashflow I would find a different way.
@Stephen Grindle if you invest inside a IRA you can't touch the cash flow without dealing with the IRA restrictions.
Also getting loans inside an IRA is difficult and more complicated so the BRRR would be difficult. If you are open to partnering I would just look at being a lender out of your IRA and be a debt partner. If you are looking to live off the cashflow I would find a different way.
Why did you move your money into a SDIRA, in order to invest in RE? How much research did you do before you did this? I don't mean basic research that tells you all the positive reasons to do this,...I mean research that tells you all the problems, limitations, rules for what you can/can't do, and obstacles associated with this.
I did about 3 months of research, talked to numerous investors and providers of self-directed retirement accounts.
The reason I went this direction is because it's the only way to have checkbook control of my retirement funds in order to use it for real estate. I'm surprised you haven't heard of this vehicle before.
Yeah, that is a huge downside to this strategy. That's why I'm looking at alternative ways to use the funds. It seems that the best way is to become a private lender. That way I don't have to deal with all the rules.
Since you have it in an SDIRA then I would suggest considering performing mortgage notes. You can definitely find notes for that price and under that would pay you monthly within a few weeks of purchasing. Otherwise you may also want to do a crowdfund or be a private lender as you indicated in the above post.
@Stephen Grindle
If you have a self directed IRA 100k why buy RE at this time?
Sometimes it is better to wait and have no deal than have a bad RE deal.
Have you considered investing in stocks specifically AI stocks until things get more clear in the RE?
Google, Intc, LRCX, AVGO, IBM, META?
Since you have it in an SDIRA then I would suggest considering performing mortgage notes. You can definitely find notes for that price and under that would pay you monthly within a few weeks of purchasing. Otherwise you may also want to do a crowdfund or be a private lender as you indicated in the above post.
@Stephen Grindle if you invest inside a IRA you can't touch the cash flow without dealing with the IRA restrictions.
Also getting loans inside an IRA is difficult and more complicated so the BRRR would be difficult. If you are open to partnering I would just look at being a lender out of your IRA and be a debt partner. If you are looking to live off the cashflow I would find a different way.
I would look at growing it and taking a hit on an early withdrawl once the numbers make sense. All this after you try growing funds else where.
Best of luck!