New to Real Estate · Lancaster, PA · Member since 2017 · 15 posts · 17 votes
Hi All!
I've been in the bigger pockets community for a while now but havent been very active. I have a full time job but my wife and I are looking to get into the lucrative business of real estate to hopefully leave our jobs in the future!
I'm now looking to connect with many others on this site as well as grab as much as advice from you all as possible!
Basically, I have about $450,000 liquid cash to start my investment journey. We're looking to get into multifamily rentals anywhere from 2-5 units and above. Starting smaller would probably be a better goal to get to know the process a little easier and "safer".
I'm looking for advice as to how I should go about starting my journey with this amount of cash. I'm also looking to connect with people in my area / near my area. I'm located in Lancaster, Pennsylvania and only 1.5 hr from Philly, Baltimore, etc.
You are in a great place! When I got started in RE, I had 0$ to spend. So I partnered my way into deals with sweat equity and acquiring/managing the deals. What I would recommend is connect with someone that is currently doing multifamily deals in your market. Partner with them for your first deal; I'm sure you can work something out where you bring most the capital, they find the deal and work with you through the entire process. Investors are always looking for other investors with cash. I'm sure they would be more than willing to partner and then you will learn it first hand from someone already doing it successfully. This will put you in an amazing position to start doing it on your own after just one deal and take a lot of the risk and fear out of it.
@Austin Smucker hey man, I am where you are, not quite as much money as you but I am ready to start investing. Right now im in education mode. Reading, watching and listening to as much as I can. There are so many nuances to this RE thing. You’re right though, you may want to start smaller. Good luck.
Have you looked into becoming a limited partner in an apartment syndication? You could invest in large multifamily deals and not have to worry about finding the deal, getting it under contract, tenants, toilets, or managing the property manager. Depending on the deal you could receive all the benefits of real estate: cash flow, forced appreciation, and a tax sheltering asset.
@Austin Smucker don’t get suckered into any boot camps or systems. Avoid syndications and partners. Buy and read books. Figure out the unique skill sets you have and what areas of expertise you are going to need to build. Get a live answering service. Will help keep you sane : ) be prepared for toilets tenants and trash
Austin, like most people mentioned here one of the best ways is to partner up. You can also be a passive investor in syndication deals where you get equity (typically in a large deal) and if done right can get all your initial capital back in a short time (1-3 year) and still retain your equity in the deal.
If you wanted to be more hands on, get a realtor and just start looking at properties that you fit what you're looking for. Even if you don't buy anything right away you'll quickly get a feel for what's good and whats not. Learn how to run numbers, it's a lot easier than you think.
You can also get on local wholesaler's cash buyers list and get their discounted properties.
You can be a private money lender and lend your money to flippers for a nice return while you learn about acquiring your own. There are so many options and you are in a great position. Talk to a lot of people, find one thing that resonates with you and just focus on that.
There are local meetups that are good in Lancaster. Obviously most of them don't meet up now but you can join the groups on meetup. Elevate Investing Group is one I recommend highly. They might have already started the in person meeting.
Good luck to you. Message me if you need anything.