$5.3M to use but 0 experience. Advice...?

Member since 2023 · 158 posts · 96 votes

2y

@Alton Pettit,

Firstly, I'd start with a reputable money manager. They'll tell you:

1) Don't put all your cash in one place.(diversify!!)

2) Don't pay cash when you only have $5.3M. Always use someone else's money to make more money.

As far as RE investing goes, I'd find a solid mentor and learn all you can before diving in. It's fun and will only take about 6 months to really get your arms around where you want to start and they will be based mostly on your personality.

Good luck with your exciting new journey.

Cheers,

0 Reply

Nate Marshall

Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 735 votes

2y

Quote from @Account Closed:

Title says it all. Currently live in Orlando. Made money from other businesses in a relatively short time and at a relatively young age, and now want to put it into real estate. Problem is this would be my first real deal. I would like some general advice from the knowledged community about where might be best to deploy this (I did make an STR-specific post elsewhere, but this is for more general wealthbuilding advice). Also don't have any agent at the moment, insurance people, or loan officer (if I even get a loan), so open to advice from people here in their areas of expertise. I used to work in CRE acquisitions so I understand the numbers but lack deal experience.

Some stats:

- I am open to both debt and all cash depending on circumstances.

- My biggest parameters are long-term appreciation, and enough cash flow to comfortably live off of (which is why I'm strongly considering an all cash "park and profit" approach without worrying about crazy interest rates). I want to cash out at the age of 115 and use the cash to buy artificial organs to live forever, lol. Honestly that is the main goal and what both keeps me going and up at night, so I'd say the ultimate "end goal" is having lots of cash and the means to withdraw it down the line, WITHOUT going absolutely insane.

- To this end I have primarily considered Hawaii (Honolulu Oahu, Kihei Maui, and Kailua-Kona - either short term rentals or long term, ideally able to live in one unit/room of the property or properties), Miami, Houston, and Space Coast Florida. Hawaii or Miami would likely be an STR, Houston would be MTR, and Space Coast also a STR. I have a buddy in Houston with large lumbar and tool yard that I believe could make good prices for new development, but again, despite the cash, I am inexperienced and don't want to make a mistake biting off more than I can chew.

- While I can manage 1-3 STRs (I think, especially if I live in or near them) and one sub-15 unit multifamily complex, I definitely cannot for more than this on my own, and still have my other businesses to run, and want to leave adequate time to devote to those as they are my only revenue sources (another reason why I'm interested in some more livable cash flow).

- And i guess as a bonus, if you had this cash, what would you do to exponentially multiply it over a 100+ year period? I am considering buying self storage, branding it, turning it into a real business and scaling with more self storage facilities to sell to BlackRock in 2077 or something like that. Standardized, corporate, branded. Or maybe some adventurerous, extreme vacation rental business. Open to putting in the time and effort for that, but I have 0 experience with self storage, turning around some old mom and pop, or managing something like that outside of what I've read online. I am not a "handy" person. I don't want to lose this money on my first deal.

Overall, I'd love to live in Hawaii and collect 6-figures a year while living for free in one unit of a multifamily or multiple condo group, just as much as I like the idea of going all in on some big brand. I wonder, where is the balance, what would be best for now, and could I start with one and scale into the other as i grow experience and hopefully more capital? I know this is a lot, but I think it'd be an interesting discussion and would really appreciate some advice from the communtiy! Thanks.

If you have $5.3 and you just parceled out $1.3 and did $25,000.00 EMD loans 52 weeks/times a year do the math. Every 5 weeks you add the interest made to the principal. I know people doing this with less than 10% of that to start with.

0 Reply

Justin Brin

Investor · Los Angeles, CA · Member since 2023 · 165 posts · 65 votes

2y

@Account Closed I think I should ask you for advice. How did you make $5.3M in short time. Can you teach me?

0 Reply

Shiloh LundahlPro Member

Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes

2y

@Account Closed people who want to live in Hawaii only say that because they have never been to Costa Rica. Just kidding - sort of.

I own some pretty cool, high adventure, vacation rentals down in Costa Rica. So I get why they appeal to people. Let me know if I can answer any questions for you about these types of properties.

Here is a picture of my newest property there. It has 8 bedrooms and 11 bathrooms. We are going to turn it into a 10 bedroom,14 bathroom massive super property in La Fortuna which is the highest tourist area of Costa Rica.

480-206-1209 Podcast Guest on Show #287

1 Reply

Jonathan Cooper

Member since 2023 · 40 posts · 30 votes

2y

you have enough money to hire a mentor and guide you through investing your money properly, without making costly mistakes. Just find someone who you share similar goals and you trust. Also, Orlando and FL in generally is not a bad market to invest, there should be great opportunities over there.

0 Reply

Katherine Earle

Rental Property Investor · Hart, MI · Member since 2018 · 89 posts · 29 votes

2y

Someone who has that much liquidity should probably qualify as an accredited investor. Hook up with other people doing big deals and learn from them......Jake and Gino have a great group to hook up with for bigger players.

or start small and learn a few times before you go buy a larger complex that has a full staff to manage it. I had $2M drop in my lap and I bought 20 units spread over 5 properties and it's been a great learning opportunity. Eventually, after they are stabilized and I refinance them, I will go buy another 20 unit property and hire a resident manager.

1 Reply

Nate Marshall

Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 735 votes

2y

Quote from @Account Closed:

Title says it all. Currently live in Orlando. Made money from other businesses in a relatively short time and at a relatively young age, and now want to put it into real estate. Problem is this would be my first real deal. I would like some general advice from the knowledged community about where might be best to deploy this (I did make an STR-specific post elsewhere, but this is for more general wealthbuilding advice). Also don't have any agent at the moment, insurance people, or loan officer (if I even get a loan), so open to advice from people here in their areas of expertise. I used to work in CRE acquisitions so I understand the numbers but lack deal experience.

Some stats:

- I am open to both debt and all cash depending on circumstances.

- My biggest parameters are long-term appreciation, and enough cash flow to comfortably live off of (which is why I'm strongly considering an all cash "park and profit" approach without worrying about crazy interest rates). I want to cash out at the age of 115 and use the cash to buy artificial organs to live forever, lol. Honestly that is the main goal and what both keeps me going and up at night, so I'd say the ultimate "end goal" is having lots of cash and the means to withdraw it down the line, WITHOUT going absolutely insane.

- To this end I have primarily considered Hawaii (Honolulu Oahu, Kihei Maui, and Kailua-Kona - either short term rentals or long term, ideally able to live in one unit/room of the property or properties), Miami, Houston, and Space Coast Florida. Hawaii or Miami would likely be an STR, Houston would be MTR, and Space Coast also a STR. I have a buddy in Houston with large lumbar and tool yard that I believe could make good prices for new development, but again, despite the cash, I am inexperienced and don't want to make a mistake biting off more than I can chew.

- While I can manage 1-3 STRs (I think, especially if I live in or near them) and one sub-15 unit multifamily complex, I definitely cannot for more than this on my own, and still have my other businesses to run, and want to leave adequate time to devote to those as they are my only revenue sources (another reason why I'm interested in some more livable cash flow).

- And i guess as a bonus, if you had this cash, what would you do to exponentially multiply it over a 100+ year period? I am considering buying self storage, branding it, turning it into a real business and scaling with more self storage facilities to sell to BlackRock in 2077 or something like that. Standardized, corporate, branded. Or maybe some adventurerous, extreme vacation rental business. Open to putting in the time and effort for that, but I have 0 experience with self storage, turning around some old mom and pop, or managing something like that outside of what I've read online. I am not a "handy" person. I don't want to lose this money on my first deal.

Overall, I'd love to live in Hawaii and collect 6-figures a year while living for free in one unit of a multifamily or multiple condo group, just as much as I like the idea of going all in on some big brand. I wonder, where is the balance, what would be best for now, and could I start with one and scale into the other as i grow experience and hopefully more capital? I know this is a lot, but I think it'd be an interesting discussion and would really appreciate some advice from the communtiy! Thanks.

If you have $5.3 and you just parceled out $1.3 and did $25,000.00 EMD loans 52 weeks/times a year do the math. Every 5 weeks you add the interest made to the principal. I know people doing this with less than 10% of that to start with.

Almost every suggestion you are getting is someone trying to get you to invest with them or with their guru etc. You can easily rinse and repeat and create quite a cash machine by lending just say $1.3 million of this. You are looking at 8 figures in LIQUID CAPITAL.

0 Reply

Jeremy Fruechting

Rental Property Investor · NW Missouri · Member since 2020 · 24 posts · 6 votes

2y

Check out a syndication with $2M. That should easily get you $15k/mo. + equity growth. Open Door Capital, Lone Star Capital, Ashcroft Financial.

Then use the rest more actively if you so desire.

We will have cash flowing MF in the midwest, not huge appreciation. And debt paydown will make that money worth 4x the initial investment in 20 years (in todays dollars) while knocking down any tax liabilities.

0 Reply

Nate Marshall

Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 735 votes

2y

Quote from @Nate Marshall: