I had a friend ask me this question: If you had 100K to invest in just real estate, what would you do?
Since we are in Chicagoland I would move because I truly think the real estate market does not favor starting a business here (I am also a realtor here). They want to move to the Nashville area.
I suggested investing in single family homes, 3 all at once, paying them off ASAP with renters, and just to keep investing.
If you had 100k to solely invest in real estate (assuming they have other investments), what would you do?
Just like Wallace said. I am in a similar situation, this year i invested around 100k in out of state markets. I mostly purchased cash flowing properties, starting out cashflow will really help you jump start your investing! If far as you were saying pay them off asap. With rates being so low I don't see a great need to pay them off any faster then need be. Personally I never pay a penny more towards equity, I would rather make that money go further with more investments. Yes, equity is great but it leverage is better!
Third: Without knowing about your friend's specific knowledge, skills, abilities, and goals giving an actionable answer is impossible.
A corollary to this fact is that any one that says "do xzy" probably stands to benefit from you doing xyz because they can sell you a way to do xyz. Most of the ppl who have recommended syndication are RE syndicators (or work for one). Shocking! (Also, anyone recommends syndication without mention the income/net worth requirements has shown that they don't have your best interests in mind, but rather that they want to sell you something.) We also have one person who has said to invest in Chicago. Unsurprisingly, he is an agent in Chicago...
Not saying that syndications or Chicago are bad, but rather that you need to take a hard look at incentives before taking people's advice.
As Upton Sinclair said: "“It is difficult to get a man to understand something, when his salary depends on his not understanding it.”
If you have to ask the question, you are not ready to deploy. It's a cliche but you just need to focus on learning ****.
Separately, knowing that you need to ask the question, I or any other syndicator of note on BP, would not accept the investment from you. Last thing we need is to have to spend time babysitting people. We're plenty busy as is...
@Merri Chocola Chicago has a lot of options, and I feel like you can normally find what you want here. I personally focus on the B-/C areas and I buy value add apartment buildings. I am in the near western burbs in Berwyn, Cicero and Lyons. Since you are an agent, I feel like it is a no brainer to invest here. You already have the insight through your MLS to do some digging into which sub markets make sense for you. What are your goals? Ease of management? High cash flow? Equity appreciation?
You should check out the Straight Up Chicago Investing Podcast that @Mark Ainley and @Tom Shallcross put together last year. You can listen to all of the local operators who are getting after it in all of the sub markets. https://www.straightupchicagoi...