100K In My Hand. Looking for Advice, Partnering Idea?
Glen Cove, NY · Member since 2015 · 110 posts · 18 votes
Hello all,
I have already read about 5 "What would you do with 100K" posts. I own a merchant processing company and have a portfolio that I am looking to unload and would like to get my feet wet starting with 100K. I am learning as much as I can. I live in New York and therefor it is difficult to do ANYTHING with 100K so I am a bit nervous when it comes to pulling the trigger. I like some properties I have looked at online in Atlanta but am completely unsure of what to do.
Looking for some advice!
@James Ritter... Whoa, my new friend! You have been on the site for a day (according to your profile...). I think we all appreciate your enthusiasm, but I think a deep breath and a comfy seat (with a good internet connection) is in order!
From your dashboard, click on the "Education" tab at the top of the page, then go the the How To guides... read the Ultimate Guide to Real Estate Investing, first. I dont thnk anyone should even post on the site until they read this (yes, it's that important), but that's not the point. After reading that guide, since you think right now you are interested in rehabs, read the rehab guide. (Don't be surprised, though, if your strategy changes as you learn more). Each Guide has several blog posts and podcasts linked within that will give you more detailed information relative to the topic you are studying. SUPER VALUABLE, and FREE. Take a look at the names of the experts that are giving the interviews or that are very active on the posts... Follow them. Also, enter "Rehab" or "fix and flip" as key words in your profile so you are notified every time there is a new forum post started, and pay attention to the questions and answers.
Bottom line... First determine what you want to accomplish with real estate, and take a sniper's approach, not shotgun blast. Once you know what you want (goal), and how you will get there (strategy), then you will be ready to build your team that will help you succeed, and define your systems. Read posts by and podcasts with people that do what you want to do, and learn. Invest your time in the education before investing the capital. Go to Meetup.com and search REI groups in your area, and then attend a few meetings before writing that first check. This is a huge step, too, and not all REU groups are made equally, so join a coup,e if that is an option.
@Mary B. is right on! There will be many here and locally that will have great intentions to help you (while also helping themselves - and there's nothing wrong with that), but how will you know if they can deliver if you don't know what to ask; how will you know what to ask if you don't get an education? All the information on this site is free, so invest in yourself before pulling the trigger... Everyone is different, but I'd give it at least a coupleader of monthsNo sense making your own mistakes when you can learn from those that have gone before you! There is nothing new under the sun, after all!
Good luck, and welcome to BP!! Poke around a while here, and I look forward to reading about your success in the future! $100k is nice starting seed, so protect it now and watch it multiply later! Cheers!
what are you not starting in your own back yard? What are you looking to do? Are you looking for buy and hold? flip?
Hello and thank you for the reply
I am thinking of just making a Pro account as I did not realize I was not supposed to ask certain things on this thread (which were removed)
Lets assume I wanted to find a partner and learn about the business from them. Would 100K be enough money to feasibly leverage that request? IE. Would it be reasonable to assume somebody would want to mentor somebody that has 100K to go in on a deal with them, and potentially allow them right to first refusal on all future properties that they work on?
I am interested in buy and hold as well as flipping. I have a brother in law that is in the business that makes a KILLING rehabbing and flipping in Brooklyn NY. (We do not get along or I would be working with him already)
Is it common to do deals so far from where you live?
There are a lot of markets where 100K is plenty to get started. The biggest issue with partnering with someone is trust. There are some sorry people out there who might talk a good game and then not work out so well.
Everything I've read and heard on the podcasts says the key to out of state investing is having trusted "boots on the ground"... I'm not sure how you establish that level of trust from afar, but that would be the key.
I would suggest spending as much time on this forum as you can for a while and just soaking it all in. There is so much to learn here, and it will all start making more sense in time. Check out the podcast as well. I have a landscaping business, and listen to podcasts and audio books while mowing grass all day :)
Good advice. Thank you
Go slow, Go far. Watch the podcasts and read all you can.
How do you know he is making a killing?
Hello and thank you for the reply
I am thinking of just making a Pro account as I did not realize I was not supposed to ask certain things on this thread (which were removed)
Lets assume I wanted to find a partner and learn about the business from them. Would 100K be enough money to feasibly leverage that request? IE. Would it be reasonable to assume somebody would want to mentor somebody that has 100K to go in on a deal with them, and potentially allow them right to first refusal on all future properties that they work on?
I am interested in buy and hold as well as flipping. I have a brother in law that is in the business that makes a KILLING rehabbing and flipping in Brooklyn NY. (We do not get along or I would be working with him already)
You should get your education from BP and other business / real estate authors, in addition to attend a few REIA meetings in your neighborhood. You can scout for coaches as you network online & offline. Even if you had a million dollars to pay for mentoring doesn't mean you will learn the business of Real Estate Investing. I don't have a problem with gurus. However, everyone learns differently and at their own pace. Don't rush to spend your $100K to learn when you can do it at a way more affordable rate. Haste makes waste. Down the line you will have that monies available for a down payment on one or more properties on a niche of your choice. My coin.
Kudos,
Mary
Because I see the deals he does. I have seen/heard rent rolls, flip values, etc etc....
I want to start out smaller than that as the properties in the NYC area are much more expensive and I dont want to wind up getting burned on my first deal and have it be bad enough to make me never want to try again.
I have been searching around but am not completely sure where to find all of this info that I need.
Could I purchase say two homes in cash (100K) and take out a home equity loan to look for more properties while I let the Rent pay the mortgage (and hopefully generate a little income)? Where can I read more about this strategy, if it is one?
Welcome, there are numerous ways to invest or even leverage your $100k. The most important thing is for you to identify and understand your goal. Are you looking at a long term or short term strategy?
In Oklahoma, you can buy and hold multiple properties or do a fix and flip with $100k.
Regardless of the market you invest in make sure you are getting solid local expert advice.
Good Luck,
Trevor
Hello James,
You should be able to make some nice profit on that 100k doing flips right on Long Island especially in Suffolk County.
The barriers to entry are much lower than the high cost NYC real estate market.
Hi @James Ritter, welcome to the BP community, there's a lot of resources here, especially about creative financing. You are right that in NYC the price is too high for a buy&hold, but there's a lot of areas like east ny, east Flatbush, etc, that you can get in for this amount plus a bit of financing as a fix&flip, after a few of those you would have enough money for buy&holds, just make sure to have a good broker on your team to have an accurate ARV.
Wishing you lots of success!
@James Ritter - I invest in ATL and Charlotte and have about 25 new constructions and rehab projects on-going. I have a few ideas for you - let's connect!
I am def interested in Atlanta as I have a few sales reps for my company there.
One of my sales reps actually works as a wholesaler as well though I never asked him what they had. Might be worth asking. I have no idea how to value projects since I am in NY and pretty new. Shoot me a PM
100K will go a long way in Oklahoma City.
I wouldn't partner up with someone just to be mentored. It would be a conflict of interest of the mentor. The only real way it works out well is if one is the money and other the doer and with some type of split. You would really have to vet out the local "boots on the ground" partner. Trust and integrity will be high priority.
The easiest for you is just to become a private lender. It would have less risk vs partnership.
The other option is what one of my California students are doing: They come to OKC every month (rent a place) so that they can invest in OKC. They manage everything during that time with the contractors, etc. They are still building the team. Luckily, they have us as mentors and access to lots of our resources. Once you plug into the REIA's and local investors, you will have access to great resources, too.
Hope that helps,
Ron
The Renascent Entrepreneur
First quite a few posters are looking to "advise" in the hopes of getting you to invest your 110k with them. I don't know if you live in nyc but yes I don't think 100k is enough to get started. However I would look to the immediate outskirts and I'm sure you can make it work. I invest in LA another high barrier to entry city and here's what I did. I found a local flipper and looked at his jobs both current and previous. I chatted with him for about 6 months just to get a good feel for him. I then became a private investor on one of his projects that we both invested together. Since then we've done a few deals together. He also mentors me and there's no conflict of interest. I don't have rentals but if I wanted to go that route I would've looked for an investor in LA that invests in multi's.
So in a nutshell stay local find a real estate investor you can trust and work with them.
good luck.
The biggest question is what are you looking to do, whats is your strategy, end game...etc...do you want cash flow from rentals or instant gratification from a flip? You can't make any decision before you know that. Just "liking" an area doesn't mean its the best for what you want to accomplish and flipping from afar is almost impossible.
You could possibly partner with someone flipping out of state and split the profits but your not going to learn much that way. If you really want to learn, I'd pick somewhere close enough for you to at least drive to that way if you partner up your still close enough to keep tabs a learn along the way.
That said, it sounds like your still trying to figure our what is best for you, I'd keep learning till you have a good plan before parting with you money so quickly.
I have a couple projects you might be interested in. I will send you a message.
whether buy and hold or flipping i'd look at alot of properties until i found one deal or a couple that were winners(would cahflow from day one etc)
@James Ritter... Whoa, my new friend! You have been on the site for a day (according to your profile...). I think we all appreciate your enthusiasm, but I think a deep breath and a comfy seat (with a good internet connection) is in order!
From your dashboard, click on the "Education" tab at the top of the page, then go the the How To guides... read the Ultimate Guide to Real Estate Investing, first. I dont thnk anyone should even post on the site until they read this (yes, it's that important), but that's not the point. After reading that guide, since you think right now you are interested in rehabs, read the rehab guide. (Don't be surprised, though, if your strategy changes as you learn more). Each Guide has several blog posts and podcasts linked within that will give you more detailed information relative to the topic you are studying. SUPER VALUABLE, and FREE. Take a look at the names of the experts that are giving the interviews or that are very active on the posts... Follow them. Also, enter "Rehab" or "fix and flip" as key words in your profile so you are notified every time there is a new forum post started, and pay attention to the questions and answers.
Bottom line... First determine what you want to accomplish with real estate, and take a sniper's approach, not shotgun blast. Once you know what you want (goal), and how you will get there (strategy), then you will be ready to build your team that will help you succeed, and define your systems. Read posts by and podcasts with people that do what you want to do, and learn. Invest your time in the education before investing the capital. Go to Meetup.com and search REI groups in your area, and then attend a few meetings before writing that first check. This is a huge step, too, and not all REU groups are made equally, so join a coup,e if that is an option.
@Mary B. is right on! There will be many here and locally that will have great intentions to help you (while also helping themselves - and there's nothing wrong with that), but how will you know if they can deliver if you don't know what to ask; how will you know what to ask if you don't get an education? All the information on this site is free, so invest in yourself before pulling the trigger... Everyone is different, but I'd give it at least a coupleader of monthsNo sense making your own mistakes when you can learn from those that have gone before you! There is nothing new under the sun, after all!
Good luck, and welcome to BP!! Poke around a while here, and I look forward to reading about your success in the future! $100k is nice starting seed, so protect it now and watch it multiply later! Cheers!
@James Ritter, first off, welcome to BP. Read, Listen, and ask lots of questions of the BP community.
As mentioned by others, your first step is always to define your investing goals. This should also include your exit strategy. Once you have these defined, then choose your markets to invest in based on your individual goals.
I would of course love to help you invest in the Kansas City market, but the truth is, there are lots of good markets to invest in across the country. You need to decide which market is best for you based on the following (there may be more, but this is all I can think of right now):
If you have exhausted yourself with these first three steps and you still have 2 or more markets that look good, then make your final decision based on convenience. By that I mean choose the market that will be easiest for you to manage. For example, if you are trying to decide between Kansas City and Atlanta and you have family, friends, and/or work assignments in Atlanta, then by all means, choose Atlanta. You will be much more likely to be successful and enjoy investing if you choose a market you actually want/need to be in.
Hope this helps and good luck with whatever you decide.