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ForumsArrowStarting OutArrowWhat to do with 40k?
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What to do with 40k?

19 Replies

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  • Posts 8
  • Votes 1

Benjamin Cook
from Great Falls, Montana

posted over 3 years ago

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

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  • Posts 3.9K
  • Votes 4.4K

Jason D.
Rental Property Investor from St. Petersburg, Fl

replied over 3 years ago
Find multi family properties and BRRRR to your hearts content.
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  • Posts 531
  • Votes 410

Will G.
Rental Property Investor from Maryville, Tn

replied over 3 years ago

need more info..... what are you trying to do, can you get financing?

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  • Posts 8
  • Votes 1

Benjamin Cook
from Great Falls, Montana

replied over 3 years ago

I can get financing and I am a veteran so if applicable the VA loan can go into play.

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  • Posts 181
  • Votes 52

Michael Macklin
Mortgage Consultant from Raleigh, North Carolina

replied over 3 years ago

Will there are many things you can do with the 40k. Depends on how active you want to be in the process.

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  • Posts 181
  • Votes 52

Michael Macklin
Mortgage Consultant from Raleigh, North Carolina

replied over 3 years ago

Sorry I meant well. Benjamin

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  • Posts 3.7K
  • Votes 1.2K

George Blower
Retirement Accounts Attorney from Southfield, Michigan

replied over 3 years ago

@Benjamin Cook

If the 401k is from a former employer, it can be transferred to an IRA, or to a solo 401k if you are self-employed. You can then invest these funds in real estate. See the following for more. 

https://www.irs.gov/retirement-plans/retirement-plan-investments-faqs

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Check Rosette Top Subjects:
Rentals, Flipping, and Team
  • Posts 3.8K
  • Votes 3.0K

Chris Seveney
Investor from Northern Virginia

replied over 3 years ago

@Benjamin Cook
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

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  • Posts 8
  • Votes 1

Benjamin Cook
from Great Falls, Montana

replied over 3 years ago

Thank you for your input Chris I have not dived into mortgage notes before. I will definitely check that out!

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Check Rosette Top Subjects:
Rentals, Flipping, and Team
  • Posts 3.8K
  • Votes 3.0K

Chris Seveney
Investor from Northern Virginia

replied over 3 years ago

@Benjamin Cook no problem and any questions feel free to send me a PM

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  • Posts 122
  • Votes 34

Nathan Patterson
from Monument, CO

replied over 3 years ago

@Chris Seveney  do you invest in 1st or 2nd notes?  Why do you invest in those?

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  • Posts 57
  • Votes 21

Mike Hottinga
from Lake Havasu City, Arizona

replied over 3 years ago

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)

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  • Posts 189
  • Votes 59

Patrick Shawn Faherty
from Fredericksburg, VA

replied over 3 years ago

Notes is not a bad idea. Or use an online platform like realtyshares, RealtyeVest, or Realtymogul.

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Check Rosette Top Subjects:
Rentals, Flipping, and Team
  • Posts 3.8K
  • Votes 3.0K

Chris Seveney
Investor from Northern Virginia

replied over 3 years ago

@Nathan Patterson

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

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  • Posts 84
  • Votes 36

Joshua Tobin
from Ballston Spa, NY

replied over 3 years ago

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!

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  • Posts 8
  • Votes 1

Benjamin Cook
from Great Falls, Montana

replied over 3 years ago

Ok awesome thanks for your input Joshua 

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  • Posts 7
  • Votes 2

Tanya Hekimian
Investor from Beverly Hills, California

replied over 3 years ago

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.

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  • Posts 192
  • Votes 88

Boyd McClean
Investor from Adkins, Texas

replied over 3 years ago

Whatever you do work with someone who has experience and you can trust.

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  • Posts 8
  • Votes 1

Benjamin Cook
from Great Falls, Montana

replied over 3 years ago

Yes @Boyd McClean that seems to be my biggest obstacle at the moment 

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  • Posts 88
  • Votes 23

Mora Clark
Rental Property Investor from Boston, MA

replied almost 2 years ago

@Chris Seveney and @Tanya Hekimian : I am interested in getting into the notes. Could you shed me some light on how to get started? Appreciate your inputs :)

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