If you had $100,000???

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If you had $100,000???

John Matthew Johnston
Investor · Beaver Falls, PA · Member since 2015 · 275 posts · 82 votes

If you had $100,000, no debt, no investments and the knowledge you have now, what would you do with it???

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
7y

Head to vegas and and let it all ride

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  • Glenn Williams
    Contractor · Maple hts, OH · Member since 2015 · 8 posts · 1 vote
    7y

    @John Matthew Johnston

    Investing in at lease three homes up and down stairs small fixes only for about 70

    0Reply
  • Kelly Iannone
    Rental Property Investor · Orlando, FL · Member since 2018 · 301 posts · 354 votes
    7y

    @John Matthew Johnston + no kids...then house hack one property with $50k and buy another with $50k

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  • Account Closed
    Lender · Milpitas, CA · Member since 2016 · 376 posts · 248 votes
    7y

    @John Matthew Johnston this is a great question, a lot of my friends are in this exact position. High tech jobs here in the Bay Area pay a lot but don't give the employees a lot of free time to make great investments. It depends on what the individual's goals are, but if they're interested in investing in real estate, I think they should put their money with a trusted individual who knows what they're doing. By investing passively, you can get some experience with the process to do it yourself one day. 

    Knowing what I know now, I know that $100,000 isn't even enough for the down payment on a hard money loan here in the Bay Area. I'd use that money as my 'skin in the game' and find another money partner to help fund the rest of it.

    Or you can just do what @Jay Hinrichs says and open some franchises, but then you're investing in a business, not in real estate.

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  • Bob Floss II
    Attorney · Northbrook, IL · Member since 2017 · 719 posts · 549 votes
    7y

    @John Matthew Johnston Partner up on fix and flip rehabs. Be the money guy, collect interest, and take an equity share on the profits. If you hook up with the right person, it's basically free money. As many will attest on here, finding the right person can be a tall order.

    1Reply
  • Kyle Brumfield
    Member since 2017 · 2 posts · 2 votes
    7y

    NNN = Triple Net Lease (Tenant pays all maintenance, insurance, and taxes)

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  • John Matthew Johnston
    OP
    Investor · Beaver Falls, PA · Member since 2015 · 275 posts · 82 votes
    7y

    @Ned Carey Thanks , the route we are headed!

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  • John Matthew Johnston
    OP
    Investor · Beaver Falls, PA · Member since 2015 · 275 posts · 82 votes
    7y

    @Sam Shueh little different story here in Pittsburgh, thanks for the reply

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  • John Matthew Johnston
    OP
    Investor · Beaver Falls, PA · Member since 2015 · 275 posts · 82 votes
    7y

    Thanks everyone for the great reply's!!! I am not extremely new to real estate, The last couple of years I have owned Sober houses and they were actually really lucrative but in the end I wanted to sell because the Liability was just to great. My wife and I love real estate and are truly passionate about it. I also can fix anything and have gutted over 4 houses myself and rehabbed them basically myself. I have liquidated the real Estate that I own and I plan to BRRRR in B,C neighborhoods. I also love to learn and spend countless hours on this site and reading books to grow my financial mind!!!!! Thanks again for the reply's everybody!!!

    1Reply
  • Account Closed
    Member since 2019 · 3 posts · 2 votes
    7y

    Mix of traditional investments (IRA, College Savings, ETC) and use $50k on a downpayment.

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  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    7y

    @James Canoy  the baltimore city market is very strong right now. Price to rent ratios are still good. We have found it very active for selling wholesaler properties to investors. We are about to list some properties that are retail flips that we just finished renovating. So ask me in a week about that part of the market.

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  • Tim JacobPro Member
    Real Estate Agent · Baltimore, MD · Member since 2016 · 520 posts · 379 votes
    7y

    Its easy to say that based on what I know now.   I would say for someone starting out single family.  For others small multi family.  

    Single family feels a little less risky and the deals really arent much worse.  I would go to a high cash flow market.  Knowing what I know now I might push my risk a little further but that does not mean go in the hood.   

    If you want to be less risky get a few properties that hits the 1% rule in a solid c grade neighborhood.  Closer to 1% than 2%.  Even in a high cash flow market 2% really isnt feasible.  I would hold off on over 1.5% unless you have more experience.  Something that is probably not just renovated so your arent paying too much.  

    Get something in an area where there are plenty of jobs in a big enough town.  Having colleges around would be a plus. 

    Id stay within 100 miles of where you live.   Getting a quality pm would be worth it for this sort of property but you could be there if needed.

    Dont be cheap about the home inspections. 

    You can probably get 3 properties for around 100k each at 25% assuming you have qualified credit and dti

    1Reply
  • Jeffrey H.
    Baltimore, MD · Member since 2018 · 169 posts · 82 votes
    7y

    jeff's 100000 crack party!!!! Come one, come all!!!!

    0Reply
  • John Matthew Johnston
    OP
    Investor · Beaver Falls, PA · Member since 2015 · 275 posts · 82 votes
    7y

    @Tim Jacob thanks for a helpful answer man!!!

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