Newbie w/ a 100k to start

28 Replies

Hi BP Family!

I want to start investing in RE to build a good cash flow. I'm not looking for flips since I never did this before, have no experience at all in this field but I do have access to 100k to start. I live in California kind hard to find cash flow properties here so I thought buying my first rental using a turn key company to buy out of state and start learning as we go.


I would like to know from you guys ( pros ) any ideas to start building a cash flow portfolio. I can't manage properties at this time by myself specially OOS. I'm a business owner, work long hours everyday but later on I want to make RE my primary source of income. Any advice will be appreciated.


Thank you guys and have a great day!

Check out James Wise of Holton-Wise in Cleveland. Even if you don't use his services, he's a good example of someone that's hustling to help out-of-state investors make a good return on their money.

You can also read "Long-Distance Real Estate Investing" by David Greene. He gives you all the information you need to set up a team that can help you invest in other states.

Could you use the 100k as a down payment for a House Hack. 3.5% down on up to a 2.8mil multifamily property in your area. Could be possible? House hacking would allow you control as you manage. I am a fan of options. 

Originally posted by @Andre Pinheiro :

Hi BP Family!

I want to start investing in RE to build a good cash flow. I'm not looking for flips since I never did this before, have no experience at all in this field but I do have access to 100k to start. I live in California kind hard to find cash flow properties here so I thought buying my first rental using a turn key company to buy out of state and start learning as we go.


I would like to know from you guys ( pros ) any ideas to start building a cash flow portfolio. I can't manage properties at this time by myself specially OOS. I'm a business owner, work long hours everyday but later on I want to make RE my primary source of income. Any advice will be appreciated.


Thank you guys and have a great day!

 My advice would be to choose a stable midwestern matket and purchase B or C class assets with traditional financing.

I also the advice given about reading David Greene's book. It has great advice about long distance investing. Have you considered investing in Bakersfield, CA. The prices are reasonable and within driving distance from Orange County. All the best!

I also advise reading David Greene's book. It has great advice about long distance investing. Have you considered investing in Bakersfield, CA? The prices are reasonable and within driving distance from Orange County. All the best!

Originally posted by @James Wise :
Originally posted by @Andre Pinheiro:

Hi BP Family!

I want to start investing in RE to build a good cash flow. I'm not looking for flips since I never did this before, have no experience at all in this field but I do have access to 100k to start. I live in California kind hard to find cash flow properties here so I thought buying my first rental using a turn key company to buy out of state and start learning as we go.


I would like to know from you guys ( pros ) any ideas to start building a cash flow portfolio. I can't manage properties at this time by myself specially OOS. I'm a business owner, work long hours everyday but later on I want to make RE my primary source of income. Any advice will be appreciated.


Thank you guys and have a great day!

 My advice would be to choose a stable midwestern matket and purchase B or C class assets with traditional financing.

 @James Wise Thank you Sir, I watch your videos often...love it!

Originally posted by @Andre Pinheiro :
Originally posted by @James Wise:
Originally posted by @Andre Pinheiro:

Hi BP Family!

I want to start investing in RE to build a good cash flow. I'm not looking for flips since I never did this before, have no experience at all in this field but I do have access to 100k to start. I live in California kind hard to find cash flow properties here so I thought buying my first rental using a turn key company to buy out of state and start learning as we go.


I would like to know from you guys ( pros ) any ideas to start building a cash flow portfolio. I can't manage properties at this time by myself specially OOS. I'm a business owner, work long hours everyday but later on I want to make RE my primary source of income. Any advice will be appreciated.


Thank you guys and have a great day!

 My advice would be to choose a stable midwestern matket and purchase B or C class assets with traditional financing.

 @James Wise Thank you Sir, I watch your videos often...love it!

 Thanks man. Glad you are enjoying them.

@Andre Pinheiro

I’m currently stationed in Jacksonville, NC and have a solid team (Realtor/Property Manager/ Contractor) all under the same roof here in Onslow County, North Carolina.

Very easy to find “1%” properties from the 70k to 120k price point.

Most of the renters are military and some are capable of 1 year or more leases.

Would be happy to put you in touch with my team.

Hi Andre, I'm in CA too (LA/Venice) and have primarily invested through the turnkey providers. If you decide to go that route, reach out anytime with questions if I can be of any help.

Originally posted by @Andre Pinheiro :

@Zoia Smith  I Will look at bakersfield, I used to live in Santa Clarita, CA few years ago @Cameron Tope is this book? 

"Giving It All Away…and Getting It All Back Again: The Way of Living Generously"


Thank you guys!

 Hey Andre, sorry for not being clear. It's David Greene's book on investing out of state. 

https://www.amazon.com/Long-Distance-Real-Estate-Investing-State/dp/0997584750

Hope that helps and best of luck!

If you're an accredited investor interested in multifamily, it may make sense to make a passive investment with a reputable apartment syndicator. If you're not accredited, buying a smaller apartment building out of state and using a professional property manager would help build a reliable income stream for you and put your capital to work. PM me if you have any specific questions.

@Andre Pinheiro , I'm in a similar boat (busy job, live in Socal) and I invested passively with an out-of-state syndicator in a small market in Indiana. I heard him on a podcast a few months ago, and we've been in touch since. I've developed trust in him. That'd be my advice to you: find solid operators in good markets, get to know them, and then pull the trigger on a passive investment in a few months' time. With the market where it is, there's really no rush.

@Andre Pinheiro

Based on what you're saying, it doesn't sound like you have time to invest actively. There are multiple options within each niche, but you do need to figure out first how much time you can/want to devote to real estate investing. Here're a few articles to help you guide in the right direction:

https://www.biggerpockets.com/member-blogs/10850/84064-what-type-of-investor-to-be-when-i-grow-up-active-or-passiv

https://www.biggerpockets.com/member-blogs/10850/85836-should-i-buy-a-turn-key-property-or-invest-in-a-syndication

Reach out if you have any further questions.

Best!

Thank you very much Alina! Great post!

Originally posted by @Alina Trigub :

@Andre Pinheiro

Based on what you're saying, it doesn't sound like you have time to invest actively. There are multiple options within each niche, but you do need to figure out first how much time you can/want to devote to real estate investing. Here're a few articles to help you guide in the right direction:

https://www.biggerpockets.com/member-blogs/10850/84064-what-type-of-investor-to-be-when-i-grow-up-active-or-passiv

https://www.biggerpockets.com/member-blogs/10850/85836-should-i-buy-a-turn-key-property-or-invest-in-a-syndication

Reach out if you have any further questions.

Best!

 

@Andre Pinheiro have you looked into the Bakersfield area?  Feel free to look through some of my older posts for updates on the market.  I would have to recommend this area for cash flow as you are still in CA and you are close to your property so if anything happens or a relationship goes sour it isnt hard to take the property back over and keep going.  Not to mention the growth in the area right now, and the diversification of employment which is helping bring jobs to the area as well.  Feel free to PM me to chat further as well!

Best

Sunny

You could make a killing, long-term, with turn-key property. $100k is a lot and numerous companies would love to help you... so be careful. I agree with the other posts about looking in the the mid west. There is better cash flow opportunities in that area. If you don't like that idea make time to get hands on and go for a house hack or live-in flip.

@Andre Pinheiro you'll need a lot more capital to make RE your primary source of income. I recommend getting back to basics in financial education before doing anything with your hard earned capital.  Unless you're looking to start a job as a landlord of your own deals and hope to be financially free by the time you have grandchildren; you'll need a better plan.

The vast majority of highly successful real estate investors use a combination of the I and B (or S to a lesser extent) quadrants (read RichDad's Cash Flow Quadrant) to accelerate the passive income and wealth accumulation real estate done well can provide.

What source of income do you have now to funnel into real estate? The more you can focus on your current stream of income and how to grow it the better you'll do down the road using income property to accelerate the formula by growing the wealth bucket.

Lots of education comes first. :)

All the best man!