How would you invest $100k?

Rental Property Investor · Portland, ME · Member since 2018 · 5 posts · 6 votes

I sold my house this spring and have $100k to invest. I'm looking for ideas from seasoned investors on how to best invest this capital.

I live in Portland, Maine. The housing market is high and bidding wars over properties are common. I'm open to multi units, development, flips, etc.

Goal: My goal is to have this money invested in ways to bring cash flow and retire from my job in five years.

Additionally, does anyone know of a lender for multi units that offer 3.5%-15% down for non-owner occ?

Thanks!

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Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

Quote from @Eliott Elias:

Put down payments on 3 flips and use the rest to set up draws for your rehab

Unless your market is different, with the high interest rates, now isn't the best time to flip. houses are going to be harder to sell and prices will come down a bit in the short term.

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
4y
Quote from @Lk Spencer:

@Theresa Harris where would you do flips.

With the current market, I'm not sure I'd flip properties. House prices are leveling off and likely to go down a bit, so flipping is risky. If you do, go for a market where there is limited supply and where prices were increasing prior to covid.
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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
4y
@Laurie Palagyi do you want it to be more active or more passive in the beginning?
The advice in the thread is all over the place.
And to answer your question - yes, there are lenders that will do 15% on investment properties.
0 Reply
Reuben Brown
Member since 2022 · 2 posts · 0 votes
4y
@John Cassel
I'd like to see that webinar as well, if possible. I'm also looking into getting into real estate to achieve financial freedom.
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Ed Emmons
Specialist · Milford, ME · Member since 2016 · 630 posts · 378 votes
4y
@Wale Lawal is right on. Learn from those who have actually done what you want to do. There are many on here with no real experience that will parrot what they have heard. I was told by a rep for Lender One Financial that they can do less down on 4 units and under. Call to verify Julianne Benson 508-615-9743. I believe they have an office in portland.
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Reuben Brown
Member since 2022 · 2 posts · 0 votes
4y
@Jerryll Noorden
Do you have a link i can learn more about this??
0 Reply
Alex Evans
Memphis, TN · Member since 2022 · 230 posts · 99 votes
4y
Hello!
The Memphis Market is a great place to invest!
We have seen great cash flow and stable appreciation for many years now!
One major advantage to Memphis is the job market that many of our tenants are employed in. We see a large number of blue-collar families that work for the distribution centers here in the city. This stable job market allows for people to rent even when times get a little tougher.
I would love to discuss the Memphis Market with you! Feel free to reach out!
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Jerryll Noorden
Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
4y
Quote from @William Coet:

@Jerryll Noorden Can you explain what you are doing with the leads? Are you a wholesaler or doing flips?

We flip houses. Started as a wholesaler, then transitioned into flipping. Now we get WAAAAY too many leads so we are putting a brutal wholesaling team together.
Telling you. Strategic thinking, will place you just where you need to be that will have far more benefit in the longrun!
Either focus on a few assets now with the 100K, OR use that 100K to position yourself right in this space and forever accumulate assets.
We could buy 1 house every month and flip it ... with our own money, if we wanted to... just because we placed ourselves right. We focused on lead generation first instead of passive income or acquisitions.
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Paul Riley
Investor · Philadelphia, PA · Member since 2020 · 82 posts · 36 votes
4y
Hi @Laurie Palagyi,
Depending on how active you want to get, I would invest that in one or two performing notes. You get monthly cashflow backed by real estate without the headaches of property management.
If you're really wanting a big change to your financial situation, then I'd recommend using that to start an active business of some kind. It could be real estate related but it doesn't have to be!
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Jerryll Noorden
Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
4y
Quote from @Reuben Brown:

@Jerryll Noorden
Do you have a link i can learn more about this??
I do. I will connect with you. Will send you a video exactly how I do all this.
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Jose JacobPro Member
Investor · 11040 · Member since 2019 · 186 posts · 111 votes
4y
Quote from @Laurie Palagyi:

I sold my house this spring and have $100k to invest. I'm looking for ideas from seasoned investors on how to best invest this capital.
I live in Portland, Maine. The housing market is high and bidding wars over properties are common. I'm open to multi units, development, flips, etc.
Goal: My goal is to have this money invested in ways to bring cash flow and retire from my job in five years.
Additionally, does anyone know of a lender for multi units that offer 3.5%-15% down for non-owner occ?
Thanks!

My suggestion is to connect with an experienced investor and do a BRRRR or find couple of small houses to rent by putting low down payment.
718-200-6100
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Alex Talcott
Attorney · Durham, NH · Member since 2019 · 292 posts · 126 votes
4y
Quote from @Alex Talcott:

2 Limited Partner investments in syndications

or, if you want property in Southern Maine, I'd be glad to discuss where/what I'm looking at. You're welcome to message me.
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Paul MoorePro Member
Commercial Real Estate Fund Manager · Lynchburg, VA · Member since 2015 · 1k+ posts · 1k+ votes
4y
Hi @Laurie Palagyi! Honestly, there are so many options and you got some good advice above. I like the house hack option if that is something you are open to doing. I recommend one of two options:
Option 1--be a generalist, keep your full time career and invest with experts. Investing with experts like syndicators, with a great track record, will allow you to stay focused on your life--your career, your friends, your family, etc. But put the money to work with someone who knows that they're doing.
Option 2--become an expert yourself. Go very, very deep on one thing and don't do anything else. You can learn a lot from the BP podcast. Maybe you will get something to grab your attention by listening to the shows. Good luck!
Podcast Guest on Show #533
1 Reply
Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
4y
put down payments on 4 flips in Killeen Texas
0 Reply
Joe Minteer
Rental Property Investor · Mechanicsburg, PA · Member since 2021 · 47 posts · 22 votes
4y
I have to 2nd @Paul Moore options.
1. Keep your job and work things slowly. I'm in the same boat as yourself, with selling a home and reaping $$, but not know "exactly" what to do. As everyone says, using the BRRR process is a "get rich slow" process. Make a plan, and work at it: make contacts, learn as much as possible, get better at estimating, etc.
2. Become the expert. This is a tough option since something you're going to have to do are things that you're not comfortable with, like maybe reaching out for help. It forces you to do it, get's you into the learning process and in the long run, will make you a better investor.
Dig into the different forums so you can get a better grip on the finance process, working with others to gain knowledge.
Look at your weaknesses, say you don't know the first thing about estimating, so take a test run of the BP rehab calculator, or go out and check out other ones online, like Flipper Force. Grab an online BRRR book from BP for yourself and read it a couple times so you feel comfortable and knowledgeable about the process.
I'll make #3 option. We learn from our mistakes. You're going to make a few, just don't be too hard on yourself. My mistake that I learned from: make sure you understand what appliances that are conveying with the property because it sucks if you need to buy new appliances. I don't make that mistake any more.
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