Cash but no time… where to start?

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Cash but no time… where to start?

Bob Foglia
Investor · Phoenix, AZ · Member since 2016 · 92 posts · 41 votes

We talk about analysis paralysis regarding a deal, but for me it’s even before that… I’ve got some cash saved, a good W-2 job with decent income and great credit (>800)… but the job requires most of my time so I don’t really have the time to “bird dog” or rehab or wholesale… I’m looking for something relatively passive… I realize that means I won’t get all the “meat on the bone” for myself… That’s OK.

I’m looking to invest for cash flow at this point. But what???

-Multiple SFR‘s?… What market? Cash flow in Denver isn't great.

-A duplex in Denver and live in one???

-Small multi-family??? Back to where?

-Self storage? Cash flow sounds good but I have a lot to learn in that area. 

-Partnership? Scary, right?

-or maybe something else entirely???

-Hire a mentor? Seems I need to figure out how I want to invest to determine the best mentor, right?

What to do, what to do, what to do? 🤔

Looking for suggestions… if you were my shoes.

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Jerry PuckettPro Member
Wholesaler · Fort Worth, TX · Member since 2010 · 1k+ posts · 1k+ votes
5y

Hi @Bob Foglia

Note investing might be something to check into.

Partnerships are only scary if you don't have a business plan and good operating agreement. 

There are Turnkey investments designed for folks busy doing something else. (I'll likely get some ridicule for that one.

Private money lending, hard money lending.

Do some meet ups and spend time getting to know the local scene players....listen and learn including what not to do. 

Not a race, it's a marathon. 

Hope that helps.

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  • Jerry PuckettPro Member
    Wholesaler · Fort Worth, TX · Member since 2010 · 1k+ posts · 1k+ votes
    5y

    Hi @Bob Foglia

    Note investing might be something to check into.

    Partnerships are only scary if you don't have a business plan and good operating agreement. 

    There are Turnkey investments designed for folks busy doing something else. (I'll likely get some ridicule for that one.

    Private money lending, hard money lending.

    Do some meet ups and spend time getting to know the local scene players....listen and learn including what not to do. 

    Not a race, it's a marathon. 

    Hope that helps.

    8Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    5y

    @Bob Foglia

    You might want to re-evaluate your investment strategy.  Take a look at this discussion thread when you have the time:https://www.biggerpockets.com/...

    In short, cash flow doesn't have to be the "end all."  As I mention in the thread, many "older" investors are focused on cash flow because they are living off it.  Other investors then think that you have to have a cash flowing investment and stay away from high value markets.  However, as we discuss, there really is nothing wrong with a "zero cash flow" property when you can wind up with it free and clear in 30 years (assuming you can wait that long).  This was/is the classic investment strategy -- I think its just not "sexy" which is why its gone by the way side.

    So, I'm not sure what you Denver market looks like, but just because it doesn't cash flow well doesn't mean its a bad investment market.  Good luck.

    4Reply
  • Rod HanksBusiness Member
    Insurance Agent · Dallas, TX · Member since 2013 · 743 posts · 462 votes
    5y

    How about lending your cash out to other investors at above market interest rates? (i.e. becoming a private lender)

    Rod Hanks Insurance4.9156 Reviews
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    6Reply
  • Sean Toomey
    Deer Park, NY · Member since 2016 · 115 posts · 85 votes
    5y

    Hello @Bob Foglia

    These are all some great responses. I would say your best bet is to attend some local meet ups or seek out your local REIA. Talk to some people, see what they are doing, and see if what you come across fits your goals and lifestyle. Investing in notes or becoming a private lender is a great way to start off. You can invest passively in projects while not being responsible for the day to day operations.

    Best of luck!!!

    3Reply
  • Chris LopezPro Member
    Real Estate Agent · Denver, CO · Member since 2015 · 1k+ posts · 858 votes
    5y

    @Bob Foglia What are your investing goals? What capital do you have to invest? Those answers will help determine options.

    If you're tight on time, then embrace it and focus on your strengths (cash flow from your job.) While Denver isn't the strongest cash flowing market, it's still a great market to invest in with the job and population growth.

    Right now, I have clients buying places to house hacks, small multis, single family homes for long term rentals, townhomes to Airbnb and commercial office space. There are plenty of opportunities around Denver (and the Front Range.)

    Podcast Guest on Show How to Use Equity in Your Home to Reach Financial Freedom Faster
    1Reply
  • Bob Foglia
    OP
    Investor · Phoenix, AZ · Member since 2016 · 92 posts · 41 votes
    5y

    @Jerry Puckett thanks… I know what you mean about turnkey type investments, but not necessarily a bad idea for someone with limited time. Especially with an upcoming 1031 exchange I’m looking to do.

    But good other suggestions as well, thanks!

    1Reply
  • Bob Foglia
    OP
    Investor · Phoenix, AZ · Member since 2016 · 92 posts · 41 votes
    5y

    @David M. Thanks for the reply… And I will definitely check out the other discussion. Unfortunately, I am one of the “older“ investors… So 30 years to free and clear isn’t really an option. I wish I had found BP 20 years ago!!!

    1Reply
  • Scott WolfPro Member
    Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 959 votes
    5y

    @Bob Foglia, to be truly passive, one should invest in a fund or with a syndicator.  If you're an accredited investor, you can invest in every deal you can find!  You can invest in a note fund for passive income, or with a syndication, you get passive income as well as a equity multiple when you exit the deal.  Happy to chat about any options you're considering.

    3Reply
  • Bob Foglia
    OP
    Investor · Phoenix, AZ · Member since 2016 · 92 posts · 41 votes
    5y

    @Rod Hanks, thanks for the suggestion… Something I hadn’t really considered, but not a bad idea. I’ve always been a little partial to owning real estate, but that might not be a bad use of my cash. I have a 1031 exchange coming up soon that I can use to buy more properties... Great, one more thing to think about?!?! 

    1Reply
  • Bob Foglia
    OP
    Investor · Phoenix, AZ · Member since 2016 · 92 posts · 41 votes
    5y

    @Chris Lopez thanks for the reply… Ultimately my goal is income replacement which is why I’m leaning more towards cash flow then potential appreciation, etc.

    I currently have about $100,000 cash… but I am in the process of selling a rental I own in another market. That one doesn’t cash flow well, but has a lot of equity… I should walk away with between $150,000 and $200,000… I’m planning to do a 1031 exchange and that might be a good money to use in Denver??? Hmmm…

    1Reply
  • Bob Foglia
    OP
    Investor · Phoenix, AZ · Member since 2016 · 92 posts · 41 votes
    5y

    @Scott Wolf thanks! Not a bad thought for my cash… Unfortunately though, I am not an accredited investor. I’ve got a little work to do to reach that goal. So I have to think a little smaller! For now anyway. 

    0Reply
  • Rico Quatro
    Flipper/Rehabber · Ft. Worth, TX · Member since 2019 · 22 posts · 10 votes
    5y

    https://medium.com/@onlywinner...

    1Reply
  • Bonnie Griffin KaakePro Member
    Real Estate Consultant · Denver, CO · Member since 2021 · 666 posts · 389 votes
    5y

    @Bob Foglia Before you exchange that older property, you may want to use the 2014 Tangible Property Regulations (TPRs) to get the old depreciation schedule scrubbed for capital to expense reversals. This will help you with taxes down the road. In addition, when and if you choose to roll it into a new property, your best bet is to go for a property that is at least $200k more than the amount you are rolling in. Then, get a cost segregation study done. We do both as part of our engineering-based studies. If you would like more information. I’d be happy to talk to you about it. 

    [email protected]303-475-4459
    3Reply
  • Joe Archbold
    Investor · Batavia, IL · Member since 2014 · 102 posts · 81 votes
    5y

    Bob,

    Not all syndications require accredited investors. Most will have a baseline cashflow as the asset improvements take shape. The real value added effort in a syndication is at sale (typically 3-5 yrs hold) where the investor as a limited partner shares in the profits that can bring a 2X multiple to your investment. Glad to chat about your situation, investment objectives and potential projects coming from our syndicators.

    Joe Archbold

    Anthem Investing

    2Reply
  • Scott WolfPro Member
    Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 959 votes
    5y
    Originally posted by @Bob Foglia:

    @Scott Wolf thanks! Not a bad thought for my cash… Unfortunately though, I am not an accredited investor. I’ve got a little work to do to reach that goal. So I have to think a little smaller! For now anyway. 

     There are still funds that accept non-accredited investors.  Always worth the search, so your cash isn't losing value with the banks current sub 1% interest they give you!

    2Reply
  • Todd Dexheimer
    Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    5y

    If you have cash, but no time, then look into investing more passively. This would be investing into a syndication, note investing, hard money lending and buying a NNN lease. They all come with a little bit of work and due diligence up front, but are passive after the fact for the most part.

    I personally would avoid small properties, like single families and duplexes if you don't have time. Even turn-key deals can take up a lot of time. 

    DM me if you want to talk passive investing. Happy to point you in the right direction and provide good resources and introductions. 

    3Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    5y

    You asked what we would do if in your shoes.....so here goes:

    I would buy a duplex/triplex/quad, in a area that tourists would desire. Live in one do STR on the others.

    You get great cash flow and get to build equity at the same time. Won't require much of your time, hire a cleaning crew, do the management yourself (couple hours a week)

    Just my .02

    6Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    5y

    @Bob Foglia

    Oh, this is your retirement! Then, you need to find something truly passive. Honestly, my plan will be to liquidate real estate portfolio and invest elsewhere for retirement. I don't want the hassle of renters in my retirement (I don't want them now, even before covid...). I guess I am too chicken s**t to learn/risk REI passive investments. There are other ways to go about it.

    Good luck.

    2Reply
  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    5y

    @Bob Foglia, Something with central reservations and management and access to lots of Denver population - Winter Park.  Skiing's not going anywhere.  And isn't the ski train back up and operating?

    The 1031 Investor5140 Reviews
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    2Reply
  • Connor Cushman
    Realtor · Cumming, GA · Member since 2018 · 158 posts · 127 votes
    5y

    @Bob Foglia partner with someone that you trust on some short term rentals. Cashflow like crazy and give a young investor an opportunity to build something that they couldn’t without your cash

    3Reply
  • Account Closed
    Member since 2021 · 3 posts · 2 votes
    5y

    @Bruce Woodruff Agree

    2Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    5y

    it's amazing how that career steals everything, year after year, decade after decade. I don't have any fantastic free investing advice for your money, I would caution you against those who do. But if you can find a way, set aside some of your precious time for learning painfully slow lessons, and screwing up, and don't believe anyone who tells you they have a sure-fire way for you to bypass the learning curve of this business, or that your time is too valuable to waste on failure. They don't and it isn't.

    3Reply
  • Jeffrey Donis
    Investor · Durham, NC · Member since 2020 · 1k+ posts · 691 votes
    5y

    Passive investing in an apartment syndication deal could also be a good option. For investors who want to own reale state without the time or hassle of managing it, this can be a great way to receive passive income and grow your portfolio. 

    Hope that helps! Let me know if you have any questions. 

    -Jeff

    3Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    5y

    Decide what you want to do (duplex and live in half, duplex, multifamily, Denver or out of state in a less expensive market that you know).  Once you've narrowed it down, find a good PM and realtor and let the PM manage it for you.  Don't buy the cheapest house, you want something that you'd live in-can be a starter, nothing fancy, but not a dump.  The type of home you get will affect the type of tenant you attract.

    2Reply
  • Tim Ryan
    Investor / Mentor / Contractor · Arcadia, CA Buying Out of State · Member since 2015 · 655 posts · 622 votes
    5y

    @Bob Foglia For your situation is why I started my company. I invest and I also help others mostly like you who don’t have time. I’m not selling me to you directly. But look for this type of arrangement and co-op.

    1Reply
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