$100,000- Where to keep it/ How to Invest it?

[Ryan Zweng]

If my goal is to leverage $100,000 in investment capital, and obtaining buy and hold investments is my long term Real Estate Investment goal for the initial 100k in capital , my questions are:

1) Where is the best place to hold onto the money?

- money market fund, bank account, IRA, cash value life insurance policy?

2) Better to use the lump sum to fund a larger investment, or split it up to fund smaller flips, or rehab jobs in order to build more capital?

[Soji Oyenuga]

Ryan,

If I were you this is what I will do (based on the scenario you stated above).

(1) Hold the money in IRA - Then use self directed IRA strategy to invest the money

(2) I will leverage the $100K by;

•  Property Type:->  Focusing on apartment or commercial property.  For simplicity sake, I will just focus on apartment in this case
•  Location to Invest :- Path of growth to any of the top 20 fastest goring cities and/or locations with high rent and lower cost per door - where cash flow is easy per door
• Leveraging the $100K :- I will setup creative marketing plan to target small apartment(20 to 30 units) to medium apartment (31 to 80 units) owners that their situation (and/or property situation) will allow me to get up to 95% seller financing or master lease option. I will look for properties that I can easily Force Appreciate (increase rent, increase occupancy rate, decrease expenses - e.g pass utility cost to tenant, etc) ... this will help increase cash flow and the value of the property very quickly (say in 90 to 120 days).  Assuming you can get up to 95% financing.. you will be able to leverage the $100K into $2,000,000 investment.  

Hope this helps... feeling sleepy now :) its 1:10am here  

Soji