Inherited $150k..... NOW what??

Starting Out
5yFollow

Inherited $150k..... NOW what??

Klint Ruud
Investor 路 Nashville, TN 路 Member since 2019 路 92 posts 路 96 votes

A friend of mine recently gave me a call a few days ago seeking advice. He recently inherited $150k and wanted to start investing in real estate. Naturally, I told him to first go learn anything and everything he could about real estate, then we could talk. He has a stable W-2 job producing 100k/year and an additional savings of 50k. Obviously, I have my own bias advice as to what I would do with it but I thought I would throw it out there to see what kind of strategies others might have. 

SO... if you were given $150k, what would you do? Looking for a DEEP DIVE. Obviously, basic strategies like house hacking, BRRRRs, Flips,and 1% rentals are all great but how much would you leverage? Would you go one flip at a time and buy all in cash? Would you finance... how much? Would you do SFRs or multi-family. Considering Nashville and the surrounding markets as the point of entry.

**Always happy to hear from investors that have their money in the stock market as well!**

6Reply
84 views

Most Popular Reply

Brian G.
Rental Property Investor 路 Los Angeles, CA 路 Member since 2013 路 1k+ posts 路 1k+ votes
5y

@Klint Ruud this is not a fruitful question because most of us would answer this based on what we would do which is related to our goals, experience, resources, investing strategy, etc. You鈥檒l just get 11 different answers from 10 different people. The first step for him is education so he can develop his own strategy based on his own situation since it鈥檚 highly personal.

12Reply
See this reply in the discussion

31 Replies

Jump to latestLatest
  • Jaquetta T Ragland
    Real Estate Agent 路 Winston Salem, NC 路 Member since 2014 路 486 posts 路 303 votes
    5y

    @Klint Ruud as Theresa stated, it depends on where he wants to spend his time...if he wants to be active, then flips. Find a few wholesalers and get on their list. If he wants to be less active, then multi family but hiring a property manager since he has a great career and doesn't need to be bothered with the everyday drama that can come with being a landlord. If he wants to be passive, then I would suggest syndication deals or REIT

    0Reply
  • Account Closed
    Rental Property Investor 路 Brooke Park Drive 路 Member since 2018 路 1k+ posts 路 2k+ votes
    5y

    Down payment for a $600k multi unit in Ohio.

    0Reply
  • Klint Ruud
    OP
    Investor 路 Nashville, TN 路 Member since 2019 路 92 posts 路 96 votes
    5y

    @Chris Thomas some great points! thanks! 

    0Reply
  • Chinyere Orie
    Real Estate Agent 路 Baltimore Maryland 路 Member since 2019 路 98 posts 路 74 votes
    5y

    If he's never done RE investing before, he should probably do something  less risky, like a buy and hold rather than doing a flip and going all in with his cash.  If he can find a cheap one where he can add value, put down as little as possible, and take his time to rehab and rent it out.  Whatever avenue he chooses, I definitely recommend NOT using all his cash on one deal.  Good luck to him!

    0Reply
  • Brad Piper
    Real Estate Agent 路 Dallas, Ft. Worth 路 Member since 2020 路 52 posts 路 27 votes
    5y

    At this point I think I'm really just piggy-backing on a lot of what has already been said, but I believe the very first step for your friend before anything else - is identifying what his investment goals are long term. Real estate is hard, but super doable, but it takes a lot of time and know-how to make a good investment, regardless of the investing strategy you're using in real estate. If he wants to get into real estate investing then he should hop onto biggerpockets.com and read for about 6 months! If he doesn't think he wants to get into real estate investing - I would go so far as to say DON'T put your money in investment real estate. That isn't because I don't believe in it, I have some properties myself, but really because the opportunity cost is so high. He can take that 150K and turn it into $2.5 - $3 million (conservatively) in 40 years without literally lifting a finger...just put it in your everyday quality funds in the market and be done with it. 

    At the end of the day - the investment of his money should reflect how he wants to format the investment of his time. If that's is for sure in real estate - go for it. If it isn't - that's fine too, it's not worth the headaches to try to build a real estate portfolio if you aren't passionate about it!

    0Reply
  • Paul MoorePro Member
    Commercial Real Estate Fund Manager 路 Lynchburg, VA 路 Member since 2015 路 1k+ posts 路 1k+ votes
    5y

    Hi @Klint Ruud.  You got some fantastic advice above!  My 2垄: If he has a great job and a growing career, I would not recommend trying real estate on the side.  Unless he is passionate about growing a real estate business and wanting to work his way out of a job.  I recommend finding a great place to invest passively.  Vet them really well. And trust them.  Why should he work harder than he needs to... in an area of non-expertise... to make less than he could?   Get Brian Burke's new book "The Hands-Off Investor" to vet sydndicators.  Good Luck! 

    Podcast Guest on Show #533
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free