I have $30,000 cash in a down market? What should I DO?

10 Replies

The question is too open-ended. There are many things you can do.

Educating yourself being the most important one.

Please provide more details such as goals, desired income strategy etc. and perhaps we can help you better. 

Hi Jeff, nice to meet you. Yes like Jett says not enough info from you to determine. Your age range, any investments now, your risk tolerance, those kind of things. I do believe if you are real new to doing deals and your real conservative stick with buying trust deeds and notes.

Good luck to you.

Look behind the curtain opportunity will always present itself. Calgary is down right now yes, But if you look at the long term economic fundamentals you know it is an impossibility for it stay down for ever. Research and educated yourself pinpoint your location in the market cycle, wait for it to bottom out and then buy buy buy. This is exactly how a lot of the successful real estate investors in Calgary started their business, patience and education. If truly interested, I know a few investors there who may be open to a JV in Alberta, also if you you're open to long distance i know a ton of them in Ontario

30 k doesn't get very far even in a down Calgary market. You would need significant bank financing and even at a fixed rate of 2.4% it would be hard to find a cash flow property you could acquire. Best use of that money could be in a reit.

There is a fine line between having the money and not knowing what to do and knowing what to do but not having the money. It seems you have the most difficult part taking care of which is the money. But simply educating yourself is what you want to do. Its good you you are going for your license. That will def give you a head start. But to better prepare yourself if you are not sure what to do then the easiest thing is to learn a particular niche where you feel confident enough to know exactly what you want to do with any capital. Its a process but there is no rush because one small mistake can cost you big time. 

@Jeff Skillen

I can tell you what NOT to do - Don't hire a seminar or Guru who will tell you that you need 0$ as he will help me raise money.

With $30K in Calgary, you won't be able to buy any SFH type of investment. You don't have enough of a DP.

A couple things you can do.. 

1) If you have an RRSP/ TFSA account, you can lend part of that money in financing a flip (for example), it will teach you the world of mortgages and private lending.

2) You can buy properties with 30K using an agreement for sale. This is very much possible as I have done so myself :) Of course, you will have to find, negotiate and structure the deal. With this method you can become a landlord for a lot lower down payment

@Jeff Skillen

Know any partners? I would consider partnering on two deals instead of going in solo on one. 

You have to trust the partner, but if they bring the experience, the education will follow. It will also help you identify where you fit in the value chain of real estate. Some people are money people, there's nothing wrong with that, and it makes you a rarity (from what I have seen). It may be worthwhile to throw some money at this experience and learn from someone who has the knowledge and connections.

What do you want to do? What we did when we first got started with $17,000 was buy a personal with 0% down. It was a fixer upper. The hope was to use our salaries but it was our back up. Once we realized we were good, we used that emergency money to buy our first investment property and off we started babsytepping our way to our current empire ;)

The key is just to have a plan and work it. Know what type of investing you want to do (we were buy and hold) and than slowly work yourself there. We chose type A houses smaller margins but in my opinion easier to manage. 

It really depends on your goals, both short term and long term. You may want to spend some time working on a well-thought-out plan for the present and for the future. 

Good luck!