starting out in the investment world

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I have an LLC that we placed our retirement money in and also have gotten a heloc on the house we own. we built a townhouse that we are renting out. we live in the quakertown area in PA. we have been studying for about a year now what may be our best options to go with since we are in our 60"s. we are seriously considering notes.. we have $300,000 to invest with and would like guidance from someone who knows our area and is willing to lead us in the right direction.

Hi Michael!

I live and invest in Pottstown PA, not too far from you, and I think it really depends on how hands-on you want to be with your investing.

You can add value to your investments by doing work yourself - finding and negotiating deals, raising additional money, learning about different strategies - and you can spend more or less time with those things, depending on your appetite for learning new things and being hands-on. In this case, you might buy a small multifamily property and have a go at being a landlord, or just find and negotiate the deal and hire a professional management company so that you don't have to take calls and handle maintenance. There's a direct relationship between your work and the additional payoff here, and some people are okay taking on a new job, while others prefer to spend their time in other ways.

If you prefer a more passive investment/hands-off approach, then you can invest in notes, if you know and understand that space. BP has a great book called The Book On Real Estate Note Investing, which provides great guidance for understanding that industry.

Another option would be for you to act as a private money lender for other people's real estate deals, which means that you're "the bank" and they do the work. For example, someone might find a house that they can buy for a great price but they don't have the funds for it. As a private lender, you would provide some or all of the money to buy and rehab the house. Then the investor who brought you the deal would either do a cash-out refinance and pay you back with the proceeds, or sell the house (as in a fix and flip) and pay you off with the sales proceeds. 

There are a lot of ways to put your money to work in this industry. Feel free to let me know if you want to know more about one of these strategies!