How would you spend $100K in RE?

Question

I’ve saved $100K in preparation for my purchase as a REI. I’ve decided I want to specialize in Multi-Family/ apartment bldgs.

Would you blow it all on 1 purchase? Would you buy multiple properties? Would you spend the money at at all? Would you look to partner ?

Interested in learning more about creative strategies to conserve my seed money.

Andrew Hogan · Answer

Congrats on the hard-earned $$ @Molefi Branson. Your strategy also depends on if you're going to quit your full-time job to actively acquire, manage, and sell MF...If you want to keep doing what got you the 100k in first place, then decide who you're going to partner with who can help you achieve your goals. You must also decide how much risk you're comfortable associating your investments with and then pick a strategy that offers you the best risk-adjusted returns. There are ways to spread that capital across 1,000+ MF Units, but you will most likely give up some control in the process if you are fine with a team sport vs solopreneur.

Jasmine H. · Answer

@Molefi Branson there are multiple options to spending your capital but it really depends on you goals and objectives.  You could try buying one property with a portion of the funds, rent it out and if successful use the rest to continue the same path.  Another option would be to use all the funds to purchase a multi unit.  Or you can buy and more expensive property in a growing location with good rent to value ratio.

Molefi Branson · Answer

@Andrew Hogan thank you! “Conserve my seed money” !

Andrew Hogan · Answer

In that case @Molefi Branson, you should vet multiple sponsors/operators that are best aligned with your goal to "conserve your seed money" and hopefully make it multiply too :)

Pretty soon you'll be able to weed out the rookies from the veterans.

Molefi Branson · Answer

@Jasmine Hieke okay thank you.

Molefi Branson · Answer

@Andrew Hogan thank you! I’d like spread my money across the most multifamily properties as I can. In my businesses separate from real estate I’ve seen the benefit of partnerships. 1000+ units would be amazing. Did you have any specific Strategies you think I could employ to do so?

Molefi Branson · Answer

@Molefi Branson My first Purchase as a REI .

How would you spend $100K in RE?

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