What would you do with $300k?

Question

This is my first post on Bigger Pockets, so I'll ask my main question and then try to provide some perspective to help you answer it. My question is this: if your goal is to create at least $20k in net monthly cash flow in 8 years, and you have $300k to get started, how would you invest that money? And, does that goal seem too conservative? Too aggressive?

Now, a little background on my experience. In short, I don't have much. I have purchased two homes that I bought as bank-owned and fixed up while living in them. I bought the first one in 2009 and sold it in 2014 for about 10% more than what I paid...nothing spectacular there. I bought the next one in 2015 and still live in it today. I've made some improvements and it recently appraised at almost twice what I paid. Aside from that, I have no experience with real estate.

In terms of education, I did take Robert Kiyosaki's Rich Dad coaching courses to learn about real estate investing back around 2010. I learned a lot, but never did anything with the knowledge other than the home purchase described above. I'm now in a position where I would like to tap into that knowledge and start investing. I'm constantly reading books and articles about business, money, investing, etc. I have a bachelors degree in Business and am in the process of selling my share of a company I helped grow from 4 to 25 people over 8 years. Once that deal is complete, I'd like to make the jump over to real estate investing and really focusing in on creating passive (as much as possible) residual income.

I have no personal debt other than my mortgage, and I plan to work while getting started with this investing.

I'm very interested in mobile home parks, self storage, and any other similar types of investments. These seem much more appealing to me than single family homes, and much more likely to help me achieve my goal of $20k net monthly cash flow in 2025 (my 40th birthday).

I'd love to hear any thoughts, ideas, recommendations, etc. on how you all would get started if you were me.

Thank you!!

Mike Carr · Answer

Educate yourself as much as you can on what niche you want to be in...self storage or MHP's. Partner with someone who has a lot of experience in that niche. Provide value by finding and managing the deal while the partner brings their experience and ability to raise money... it might not be a lot of equity % on the first few but the important thing is the experience and building a track record. You could also offer to throw money in deals as well. Once you have experience do them on your own. Take the profits (from cash flow/refi/or selling the deal) and put them passively (LP) in other deals so your money is constantly working for you. You should be able to get to $20k a month in 8 years no problem. The more money you throw in other peoples deals the more passive your investing career will be.

That's just my opinion... I don't have $300k or $20k passively. But this is the path I am trying to take to get there.

Good luck!

That's just my opinion... I don't have $300k or $20k passively. But this is the path I am trying to take to get there.

Good luck!

What would you do with $300k?

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