Fayetteville, NC · Member since 2013 · 22 posts · 0 votes
I will be working abroad with 2-3 months off a year to go back to the states and look for an investment deal. Will have roughly 100,000 to invest in. I am thinking about purchasing a duplex or triplex. What is your thoughts? Would you go a different route? All suggestions and advice will be much appreciated.
Make a down payment on a couple quads or any other rental and hire a property management company while you're gone. Easy money. Make sure you save enough for repairs.
I'm still an amatuer myself, but from everyting I've read setting a specific, defined goal is step #1. It should be very precise, like how much cash flow do you want to create in what timeframe.
I'd agree with what William H said. Most people have goals financially and that is why they invest in real estate (or anything else). Unless you love duplexes because they are duplexes. Find what your financial goals are, then properties that help you towards that goal.
Real Estate is just the VEHICLE to get you to your destination. You have to know where you are going before you know the best way to get there!!
Make a down payment on a couple quads or any other rental and hire a property management company while you're gone. Easy money. Make sure you save enough for repairs.
No one can answer this for you. A duplex/quad/etc... doesn't matter. Just go buy the numbers and what is available in your area. Perhaps there is a quad in your area, but a duplex is selling at much better value. Seek out the value deals and the cash flow will follow. There isn't a "this is the best type of property" to buy. Each deal is specific to how unattractive/attractive it is.
Look at things for sale in your area, breakdown income/expenses...and the numbers will make the decision for you
Lee beside what others iterated you should mostly focus on your Cash on Cash Return will be. This is pretty straight forward in that if you are putting set amount in what % of the money do you get back. Start looking at all various types of real estate and figure out what the Cash on Cash Return will be. This should give you an idea which property gives you the most back. OR just do hard money lending and make 10-12% without any work.
If I had a 100k free and clear I would be looking at more than a quad in NC. You can probably get a couple quads or building for that much down payment.
Just send it all to me - at least I won't try to scam you out of your money :)
Seriously, be cautious when you disclose that you have significant sums of money on the internet, as that will attract all sorts of scammers and riff-raff trying to separate you from your money - especially by proposing things to you that might seem like good opportunities on the surface.
I will be working abroad with 2-3 months off a year to go back to the states and look for an investment deal. Will have roughly 100,000 to invest in. I am thinking about purchasing a duplex or triplex. What is your thoughts? Would you go a different route? All suggestions and advice will be much appreciated.
Whatever you do, don't become a motivated buyer. There are lots of ways to make a reasonable return and a lot more ways to lose what you have worked for.
Sounds like you are living out of the states full time. If I were in your shoes (I'm not so you have to decide what's best for you!) I'd look for a SEASONED, REPUTABLE, investor in the market I want to acquire property. I'd partner with that person offering up the $100K since you have not time or knowledge to bring to the table. I'd consider being the 'money guy' behind some flip deals earning a % of the profit, or as the lending partner on buy & holds. I have done this with several inexperienced investors and I called it my Equity Participation Program. They put up all the cash, I acquire the house, deal with the management, we split the cash flow and upside. It is a great deal for both of us.
Your post says your from NC. I'm sure you can find someone on this forum who meets the above qualifications and would consider partnering with you.
If you plan on coming back here for a short time, investing your money on your own, then heading back overseas, the odds are probably against you ever seeing 100% of your money again, but it will be one heck of 'seminar' story.
@stephanie Dupuis - Thanks for bringing this up! I'd love to know how to learn about HML too! I have been looking for some good beginner level books but haven't found any yet. Do the pros here have specific suggestions?
If you plan on coming back here for a short time, investing your money on your own, then heading back overseas, the odds are probably against you ever seeing 100% of your money again, but it will be one heck of 'seminar' story.
Why do you say that? Do you feel that most people would take advantage of Lee?
Two of the three above forum links seem to repeatedly bring up hard money lending, as do several posters above.
If someone has no prior experience lending money - is HML realistic? How would someone go about lending hard money well (intelligently) and correctly?
I would think that anyone lending money in general needs the following:
a) Trust in the person/entity that they are lending to, that they will get their money back and the terms of the contract will be upheld.
b) A good legal contract to protect themselves.
If you don't have at least A, then having B might not be as beneficial as you will always be worrying about your money.
Take the money invest with someone experienced in a large apartment deal. The size of the deal supports onsite professional management.
The NC/SC areas are good emerging markets where equity is rapid and huge. An experience group makes your money safer
People are getting deals at >20K a door.
Lee Melvin First off, welcome to BP! You've come to the right place to learn about real estate investing.
Rather than choosing the type of property you want to invest in, you need to ask yourself a few more questions, such as:
Where will you be living? Do you plan to invest in the same area?
What is the local economy like? What drives the economy? What types of properties is there a demand for? Do you want to be a landlord, or do you want to buy/rehab/sell?
What is your experience? Do you have any skills that will be beneficial in real estate or rehabbing?
You don't want to just choose a niche like duplexes or triplexes, until you know that there's a market for those types of properties, etc.
Read the book Beginners Guide to Investing, it's free, and can be accessed from the tab Learn at the top of the page. You have plenty of time to start your homework before you spend your money, and the perfect place to help you along. Have fun. Post questions, etc.
Also, if you can upload a pic of yourself, it adds to the site being able to see other members.
P.S. Fill out the keyword alert, with the city you are interested in, type properties, or ? and be notified anytime that word is being discussed.
Why do you say that? Do you feel that most people would take advantage of Lee?
People do not make the best decisions when they are on a deadline. Also, it doesn't sound like Lee has a lot of experience. Real estate is one business where lots of 'good deals' suddenly show up when someone has some money to spend, especially when talking to real estate agents.
Stephanie Dupuis - Thanks for bringing this up! I'd love to know how to learn about HML too! I have been looking for some good beginner level books but haven't found any yet. Do the pros here have specific suggestions?
A Spalten and Stephanie Dupuis - here are some links for further reading: