Starting out with $100,000 cash - what do I do?

Starting out with $100,000 cash - what do I do?

Silverton, OR · Member since 2016 · 43 posts · 14 votes

Hi everyone. I am brand new to the Bigger Pockets Community but love the info so far. I am selling my business and will have at least $100,000 cash to get me started, plus ongoing payouts over 4 years that cover my family's living expenses during the entire 4 years. I recognize many people would love to be in this situation and feel extremely blessed by it, but being new to investing I'm not sure how to maximize that lump sum. I don't want to simply throw my cash away at the first deal that comes my way. I am thinking it would be best to pay cash for a distressed property, fix it up, rent it, then refinance and start the process over again but want to do it right. Maybe there are other options that would move that investment faster...again, not exactly sure how to proceed. I am a good helper with projects but am not from a handyman family, and don't know any reliable contractors. We have a personal residence that we could move out of if something were to come up and it would cashflow about $300/month right now if we rented it out.

Does anyone have any advice on turning that $100,000 into maximum passive cashflow within the next 4 years? Thanks for any insight.

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Member since 2016 · 13k+ posts · 12k+ votes
10y

Do not start with a flip. They are highly risky (I have done numerous flips) and based on your personal skill sets not at all advisable. Your only option would be to be a money partner with a experienced flipper until you learn the ropes.

I would suggest you start with a good solid positive cash flow multi plex. Put 20% down and learn the business of being a landlord. Manage it yourself, do all your own repairs and once confident do it again or maybe consider partnering with a flipper at that point in time.

Fast is not part of the formula for growing wealth.

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  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    10y

    @Tim Richardson

    Hi Tim

    Choose a niche in real estate and really become an expert.  You have some time it appears so dedicate  time to learning.  Try to find an investor/mentor who you want to replicate their strategy.  Start networking in the market you choose to invest in.  It took a long time to accumulate the money, and you can lose it in the blink of an eye.  Trust me, I know.

    PM me if you want to learn about investing in multifamily properties

    Good Luck

    Gino

  • Investor · Springfield , OH · Member since 2014 · 32 posts · 22 votes
    10y

    Tim, I am buying, but not just anything. Only brick ranches and cape cods. Also, there must be a garage. I also look very carefully at the neighborhood. I screen all of the applicants. As I am in my 70s I don't rehabilitate. I use tradesmen for the repairs and bringing everything up to code. 

    I have some homes out of the area and I use a property manager for those.

    Here are two of my latest. They go fast.

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