23 years old with cash available but no direction

[Jaylin Logan]

I’m 23 years old and fairly new to the real estate investing world. I’ve done quite a bit of research the past few years & I’ve only gotten far enough to know the avenues I could possibly take. I’ve always been eager to get started but also too scared to just stick my neck out & make the wrong purchase. I have a little over $120k to invest but need a bit of direction to know where to begin. I’m looking to maybe invest in Louisiana (where I’m from) being that the cost of living is so low. The multifamily webinar kinda gave me a bit of insight and was thinking of going that direction. If possible, please reach out with any advice, tips or direction. Anything helps

[AJ Wong]

I owned a property by the time I was your age but didn't have my head on straight..you have plenty of time, so take it. With that said you're heading for success, RE investment is about duration. I would advise to start small. Possibly purchase a primary with a second ADU or Duplex. You'll get the most favorable financing terms and offset your housing expense while paying principle. Be conservative and connect with professionals and friends or relatives of those that have successfully invested in Real Estate. Look into FHA loans for 1-4 units and check in with
@Joseph Chiofalo for first time investor mortgage overview. Good luck! 

[Joseph Chiofalo]

Hi Jaylin, 

There are many investor loan products with flexible underwriting guidelines available for buyers. 

If you do decide to purchase a primary, a multi-unit property could be a solution in terms of receiving cash flow on the other rented out units. 

An FHA government loan allows for up to 96.5% financing up to 4-unit property.

[Kamal Hayes]

Jaylin, I DM you.

[Jordan D'Silva]

Congrats on having the money to invest! Before you get any further, if you haven’t, I would highly recommend writing out your specific investment goals, your reason for investing, how active you want to be, if you want invest close to home etc. Once you do that, then you start to figure out the best path. Don't fall for the masterminds or hustle and grind type of content, know yourself and then look at the most direct path. For us, its about creating posititve impact, long-term capital appreciation, and decent cashflow, so we are investing in low-to-moderate income heavy value-add 3/2 SFRS in southern DFW. All very intentional

[Max Ferguson]

If you are living for free this may not be the best strategy, but most folks start in the Househacking arena. A 2-4 unit as highlighted by others above is a great way to reduce costs of living, gain equity, and eventually move on while retaining the asset for cash flow. You can also do this with a single family with multiple bedrooms as well. Depends on markets of course, so if you are a HCOL area with high list prices, this may be out of reach even with 100k+ to put down (while you can get away with less, this may create a problem with too high of a PMI and overall mortgage payment).

Congrats on taking the right steps and let us know what you decide!

[Zach S.]

23 year old here too! I work with a large group and we help people start investing passively as an LP, I've found it's a great way to get started because you can watch and learn with much of the risk removed since the experienced sponsors are doing the heavy lifting. We have a couple great offerings right now ranging from 24-30% returns and one with a 6month liquidity provision if you don't want to leave your money in for too long. Happy to share more info anytime.

[Mackaylee Beach]

I'd say you're already on the path to success – starting at 23 with $120k is impressive. I would carefully consider my long-term goals, especially if you're thinking about investing out of state.

It's essential to have a clear vision of where you want to be in the next 5, 10, and even 20 years. Take the time to research potential markets and understand the trends that might impact your investments. Networking with other investors and seeking advice from financial advisors can provide valuable insights and help you avoid common pitfalls.

Keep an eye on your financial health by maintaining an emergency fund and avoiding over-leveraging. Real estate can be lucrative, but it's also important to be prepared for unexpected expenses and market fluctuations.

Remember, patience and perseverance are key. Success in real estate often comes from making informed decisions and staying committed to your long-term strategy.