Investor · Atlanta, GA · Member since 2017 · 54 posts · 10 votes
I have paid off student loans, my house, credit cards, car and have 100k that i would like to invest. I have been looking into carwash, storage units, multifamily rentals, and other ideas. I would like to find multi family (5+ units) to invest in i just dont know how to find the deal or structure it. I am interested in how others would invest 100K today if they had it?
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
4y
I like to tell new investors KISS haha Keep It Stupid Simple. Just buy a 4 unit 25 down in any class A/B area and you will do great, no need to do commercial loans, big rehabs, etc. atleast at first.
I like to tell new investors KISS haha Keep It Stupid Simple. Just buy a 4 unit 25 down in any class A/B area and you will do great, no need to do commercial loans, big rehabs, etc. atleast at first.
yeah i have been keeping my eyes open for a 4 unit. I need to find a better source for those types of properties.
Lender · Boca Raton, FL · Member since 2014 · 250 posts · 133 votes
4y
Congratulations, your ahead of the game already. I agree, keep it simple buy something for 200k 1-4 unit, near you, but 25% down. In 10 years it will make you a fortune.
Investor · Dublin, OH · Member since 2014 · 241 posts · 495 votes
4y
I think the most important question to ask yourself is do you want to be active or passive. Active investing means you buy the asset (like a four unit) and you manage the asset - you can hire a property manager or do it yourself - either way if you own the asset and are managing the asset, you are an active investor. Many people have great success being an active investor. I started out active and found that I was not great at being an asset manager and finding quality property managers was a huge struggle. I started with single family homes in my market, moved to turnkey in other markets and then to multifamily. Fortunately, the markets helped me and I made money from the sale of the assets - but I did not make much in cash flow, which is why I bought the properties. I thought I was investing passively because someone else was managing the property - that was false. I was an active investor and not a very good one!
Then I discovered real estate syndications and true passive investing. I have had much greater success with passive syndications - there are active parts - I need to find and vet sponsors, analyze deals, research markets and learn about different asset classes (some of which you mentioned in your initial post). But after I do all that and send the wire - my investment because completely passive. I have no responsibilities - other than reading regular reports and (hopefully) depositing checks. I have found that the returns match or beat the returns from active investing and it's easy to figure out why - I am hiring professional asset managers to manage all aspects of my investment. This is their job and presumably through my vetting process, I have found great operators - they are much better at managing the assets and economies of scale than I could ever be. I lose control of the investment and these are long term, illiquid investments - but they put significant and regular cash in my bank account and a much higher rate than when I was trying to be actively passive. One other advantage of passive investing is you get much better diversification because you don't need to stick to one asset class. You can find quality operators and leverage their expertise which allows you to be an investor in more than just multifamily - you can get into the other asset classes you mentioned - self storage, car washes and many many more!
Investor · Newport Beach, CA · Member since 2019 · 31 posts · 16 votes
4y
HI @Jef A. - I'm going to give you my personal experience on my first property and let you just run with it. I can't tell you to do one thing or another because this is based on YOU. Your goals, your risk tolerance, etc. Only thing I can tell you to do is make sure you know your numbers.
My first purchase was a 4-Plex and I found it off market by sending direct mailers to owners. The original cost basis was $645,000. I put 25% down on it or $161,250. Over the year, I fixed some items up and raised rents as 3 out of 4 units were under market. For the short year I owned it I was lucky and the market was appreciating so I executed a cash-out refi. In one year I paid myself back 1/2 of my down payment (Roughly $80K tax free), lowered my mortgage payment, and increased my cash-on-cash return to around 30%.
One thing to note based on your comment of 5+ units and you probably know this already but 4 units (residential) and below are valued differently than 5 (commercial) units and more. Residential properties are based on sales comps in the area and this is very difficult to control. Commercial is based on net operating income and this you can somewhat control. My point being is that I was lucky in the fact that I purchased my 4-plex at the right time and in the right market as it appreciated. I would have not been able to do that cash out re-fi if the area I bought in was stagnant.
I have a good property manager that essentially handles everything for me. I probably spend 3-5 hours a month on it and that is my own accounting and keeping up with market updates. Ie; rental rates, buildings being built in the area, etc.
For me, this was a good place to start. I was out of my comfort zone at the time but I didn't over-leverage myself or capital. Currently, I'm moving to self storage because I like the business model and can see myself running these when I quit my W2 job (software sales) here shortly.
@Jef A. It depends on how active you want to be in the investment process. Do you have time to be more active or are you looking to invest passively?
I do have a w2 job today so i can't be fully hands on but plan on using the same property manager that i have for my rental now for any additional rentals. I am trying to position myself now to use my w2 income to put me in a position to quit in a couple years after i make the right investments and then i can devote 100% of my time to my business.
Investor · Atlanta, GA · Member since 2017 · 54 posts · 10 votes
3y
@Chad Acerboni - I have chased a couple opportunities but haven't closed on anything yet. Still in the phase of finding a deal that makes sense for me.
Investor · New York City · Member since 2020 · 164 posts · 75 votes
3y
@Jef A. As others have said, the first step is determining whether you would like to be active or passive. If active, spend time on education and mentoring. If passive, find a good operator and a solid deal to invest.
As for asset class, we pivoted to self-storage a few years ago. Even if there is a crash, and people downsize, those people will have a need for self-storage, as evidenced by storage occupancy rates during past recessions.
And during inflationary times, our rental rates increase. We're also able to evaluate our rates, and keep pace with inflation, on a monthly and quarterly basis because of shorter term leases.
Commercial Real Estate Fund Manager · Lynchburg, VA · Member since 2015 · 1k+ posts · 1k+ votes
3y
Hi @Jef A.! You mentioned above that you have a W2 job and it sounds like you must be quite successful to have paid down loans and saved that much money. Congratulations! My take after well over 20 years of investing in real estate is that if you want to continue to enjoy a great and profitable career and also have a life, that you consider taking @Jim Pfeifer's advice. I would highly recommend passive investing which will allow the experts to take the risk and acquire the debt and manage the toilets, tenants and trash. If you decide to go that way it's critical that you find a community and do a lot of due diligence on operators and the investments. You can do that through Left Field Investors. You may also want to check out Brian Burkes' excellent book The Hands-Off Investor. Good luck and happy investing!
Paul, I would love to know where you are going for your investments in real estate notes. I've seen a couple that, I've copied for further investigation later. I would love some input from you as someone who is currently investing in them.
I have paid off student loans, my house, credit cards, car and have 100k that i would like to invest. I have been looking into carwash, storage units, multifamily rentals, and other ideas. I would like to find multi family (5+ units) to invest in i just dont know how to find the deal or structure it. I am interested in how others would invest 100K today if they had it?
I am in georgia.
Hey there,
First off, congrats on paying off all your debts—that’s a huge achievement! With $100k to invest, you're in a strong position to make a solid move into real estate.
Since you're interested in multi-family (5+ units), I’d definitely recommend looking into markets like Indianapolis, which is known for strong rental demand and relatively affordable property prices compared to Georgia. Indy has a growing population and a diverse economy, making it an attractive market for multi-family investments. The best part? Your $100k can go a long way here, especially when leveraging financing.
Finding the right deal and structuring it can be challenging, but that’s where connecting with local experts can help. In Indy, we’ve seen some great opportunities in multi-family properties, and I’d be happy to share more details on what’s available and how deals are being structured here.
If you’re open to exploring opportunities outside of Georgia, I’d love to chat and help you find a deal that aligns with your investment goals.
Real Estate Broker · Phoenix, AZ · Member since 2019 · 165 posts · 100 votes
2y
@Jef A. The first question I ask of every investor, regardless of the amount or their experience level, is "What does your money need to do, how soon does it need to do it, and how involved do you want to be along the way?" How you answer this should direct you to the right investment vehicle. For instance, if you tell me the entire $100K is going to be needed in 2 years to be the down payment on your primary residence", I'm going to advise a different investment type than if you tell me "the money only needs to return me an annualized 8% gain, I don't need the money for at least a decade, and I want zero management or oversight." Two totally different scenarios and very different investment types that you should be considering. The "what" you buy is determined by the "why" of the investment dollars. Start there first. Happy to connect and talk through this in more detail if that's helpful, you can send me a DM or connection request if so.
Investor · Dallas, TX · Member since 2020 · 104 posts · 43 votes
2y
It really depends on your options from an active versus passive lens. With our rental business in Dallas, I can make greater returns because I run the business and I know what a great deal looks like with our specific niche. If I didn't have this business then I would look at passive investment opportunities diversifying between real estate (SFR), index funds, and likely a private credit fund.