I'm brand new to the real estate game and have 40 k ready to invest. I know it's not much but what's the best way in your opinion to get my leg in the game, get some experience and overall start making some cash flow/profit?
PS I do live right outside a military installation
need more info..... what are you trying to do, can you get financing?
I can get financing and I am a veteran so if applicable the VA loan can go into play.
Will there are many things you can do with the 40k. Depends on how active you want to be in the process.
Sorry I meant well. Benjamin
You have many options, you can invest locally in your community or if the market is not a great market you can invest out of state, you can lend money, or you can invest in mortgage notes which is what I do.
I like notes because you are the lienlord (bank) and not a landlord so you don’t have to deal with tenants, toilets or termites
Thank you for your input Chris I have not dived into mortgage notes before. I will definitely check that out!
@Benjamin Cook no problem and any questions feel free to send me a PM
@Chris Seveney do you invest in 1st or 2nd notes? Why do you invest in those?
Could you give more information on your current living situation and REI knowledge base?
My recommendation for you is to:
Save your money and educate your self before you do anything.
Learn the different niches of REI and which one is right for you. (Buy and hold, flips, notes, hard money, house hack, etc)
Notes is not a bad idea. Or use an online platform like realtyshares, RealtyeVest, or Realtymogul.
I invest in 1st position notes. The reason I invest in them is:
1. Flexibility to invest in any major market
2. First position on property with 40-60% equity in the property.
3. You are the bank. Don’t have to deal with tenants, toilets or termites as the bank.
4. Velocity of money. Be in and out of a deal within 24 months and do not have to pay realtor/broker fees.
5. Returns. Cannot advertise or promise returns So send PM to learn more.
6. Multiple exit strategies
In my market (DC), too many investors fighting over properties which have driven up prices. With notes there is competition but plenty of product out there. Prices have increased substantially but still product to work and make money on
I'm in your same situation. I'd recommend starting with a BRRRR and using some of the cash as a down payment & rehab fund. Good luck!
Ok awesome thanks for your input Joshua
I'm also a new non performing notes investor after being a buy and hold multi family investor for the past 20 years. I like making my money when I buy. I also like not having to deal with getting financing because I am the bank! And I love the idea of receiving and controlling the cash flow without having to deal with tenants. We love the cash flow but don't want to deal with tenants and notes gives you the best of both of those.
Whatever you do work with someone who has experience and you can trust.
Yes @Boyd McClean that seems to be my biggest obstacle at the moment