What to do with 20,000 cash?
Knoxville, TN · Member since 2016 · 9 posts · 3 votes
I've recently came into a few dollars and I have been interested in multi family small apartments. Any suggestions would help,Such as a broker that specializes in the multi family arena. I reside in Knoxville TN. By the way if multifamily is not suggested, please tell me what is. I am willing to listen to all suggestions and ideas. Thank you in advance.
Air ticket to Vegas and take your chances on the roulette wheels...
Just kidding! Please don't do that.
I actually asked an experienced investor the same question not too long ago. Pretty much exactly what you are asking and I found his answer interesting as it was not what I had expected.
I told him I was planning on putting a down payment on a primary residence and moving out of my existing one in order to rent it out. I also said if I find something that would rent well I would use that money for a downpayment.
He told me not to go that route.
He said to invest my money in direct mail marketing instead and find deals. He told me if I find deals, finding money would be easy. I have come to realize this to be 100% accurate. I haven't had any trouble finding money when a good deal is present.
I don't know about the Knoxville market, but in my market there is nothing on the MLS. Everything is direct mail. There are many ways to invest $20k. Explore your options and make a decision. Once you make a decision the rest is easy.
@Walter Purdy Thank you very much. You are correct.I should have defined what kind of multifamily I am interested in. That would be commercial multifamily apartments 5 to 20 units. That's the niche I've chosen and have been researching for little over a year now,so I am still learning. Thank you so much for your suggestions.
@ Brandon Hall @Christopher B. @ Jon S. @Brandon Hall @Kenneth Reimer @Chris Eaker It's part of work injury settlement. The majority was put away for my daughter and son. My finances are in order,meaning no credit card debt, no car payment, no college loan debt etc. Speaking of college my son made the Dean's list his freshman year and this Aug will be turning 19 yrs old and starting his sophomore year at MTSU. ( Proud parent moment, my badd) Back on the subject, my injury occurred last May, after months of physical therapy and learning to walk again I had time to read a few books. The Millionaire Mind, Rich Dad Poor Dad, Commercial Real Estate Investment for Dummies as well as numerous ebooks and podcast. I will be attending my first REIA meeting the second week of July here in Knoxville TN. Thank you all for the feedback.I am truly grateful to each and everyone of you. I will keep you all updated.
@Christopher B. I found it strange that you are putting down the concept of buying small houses in working class neighborhoods, yet you suggest buying $10K trailer houses? Trailers are a horrible investment because they go down in value and you don't own the land they sit on. Often they are just abandoned at the trailer park. The type of person living in a $10K trailer would be much worse than someone in a blue collar neighborhood. @Erica Muller defended her statement very well when she explained that she is actually suggesting wholesaling. In that case you can buy and resell for a profit. @Marcus Cox buying trailers is not a good long-term wealth strategy. Wholesaling or buying entry level homes are both better options.
I'm not putting down small houses or working class neighborhoods. Actually I own small houses and rentals in working class neighborhoods myself. Your viewpoints on trailers are, in my opinion, misinformed because that statement while it can definitely be true isn't always so.
I simply took her opinion as meaning, buy a small, cheap house and flip it. Selling a small 2/1 house say under 1000sf for 75k, is more difficult than a 3/2 that's 1200sf at 115k in my experience. From her response I took it wrong.
My example with the trailer, which was also accompanied with a duplex example, was to say he could generate more cash flow with a trailer. If someone has a limited amount of funds to start with they have to decide what they want to accomplish. Is the op trying to create wealth immediately or does he need to use his seed money to generate more capital so he can then begin working on strategies that build long-term wealth?
I have a friend who owns a lot of trailers along with two trailer parks, I'd say he would disagree with you because the large amount of cash flow his trailers throw off has allowed him to purchase more traditional pieces of real estate. So sure, a trailer is like a car in that it will depreciate over time but it can create solid cash-flow that can be used to buy assets that will help build ones long-term wealth. There's more than one way to skin this cat.