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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  • Account Closed
    Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
    5y

    Its hard to say without knowing your total financial picture. How much risk do you want to take? How much liquidity do you need? Whats the time frame of the investment? I know people hate taxes but if you are clearing $150 to $200K , that's probably not even all profit. Even on $100K of profit capital gains is $15K. Not peanuts but not worth getting into a marginal investment to save $15K and lose $50K! 

    Why are you selling the rental? If its appreciated that's good right? What would it cash flow if you paid off the loan? How long more to payoff? What if you take your excess cash and pay it off faster? Or do you just not want to be a landlord anymore? In that case why buy another rental at all?

    Lots of questions for you to think about..

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

    @Bonnie Griffin Kaake, thanks for the info… that is some new info for me. I need to research that a bit. I’ll try to reach out to you next week. Thank you again.

    0Reply
  • Mark Servin
    Investor · San Antonio, TX · Member since 2016 · 23 posts · 9 votes
    5y

    Hi Bob - If you are considering Real Estate Notes, my wife and I originate them in San Antonio. We have one currently that is a First Lien Position, seasoned 2 years with a lending amount of $35,000 at 9% interest. Looking for an investor willing to commit for 3 years. 

    If interested let me know I would love to talk to you more about it. Thank you. 

    1Reply
  • Cody McVay
    Rental Property Investor · Columbus, OH · Member since 2017 · 31 posts · 35 votes
    5y

    @Bob Foglia I would Invest in large syndications with tried and true operators this is a passive way to make some serious returns depending on the amount of capital you have to deploy, On a smaller scale I would probably consider a Joint Venture with someone in a market you're interested in. A great book I recommend would be "The hands off investor" by Brian Burke.

    Best, 

    2Reply
  • Bob Persichetti
    Investor · NJ · Member since 2020 · 17 posts · 18 votes
    5y
    Originally posted by @Cody McVay:

    @Bob Foglia I would Invest in large syndications with tried and true operators this is a passive way to make some serious returns depending on the amount of capital you have to deploy, On a smaller scale I would probably consider a Joint Venture with someone in a market you're interested in. A great book I recommend would be "The hands off investor" by Brian Burke.

    Best, 

    Cody, I am familiar with the requirements for accredited investors...what would consider the $ available threshold for moving toward large syndications? 

    1Reply
  • Cody McVay
    Rental Property Investor · Columbus, OH · Member since 2017 · 31 posts · 35 votes
    5y
    Originally posted by @Bob Persichetti:
    Originally posted by @Cody McVay:

    @Bob Foglia I would Invest in large syndications with tried and true operators this is a passive way to make some serious returns depending on the amount of capital you have to deploy, On a smaller scale I would probably consider a Joint Venture with someone in a market you're interested in. A great book I recommend would be "The hands off investor" by Brian Burke.

    Best, 

    Cody, I am familiar with the requirements for accredited investors...what would consider the $ available threshold for moving toward large syndications? 

    I've seen minimums as low as $25k If you're an accredited investor, but I would say most operators are looking for a minimum investment aro $50k, however, I've seen some of the big guys like Grant Cardone having a minimum investment requirement of $100k, it just varies from operator to operator.

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

    @Bob Foglia You could also look into investing passively in a multifamily apartment deal. If it's a good deal, you could get decent returns without the stress of managing the asset.

    Hope that helps. 

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

    @Dave Foster, I like this idea!… Just happen to be in Winter Park/Fraser this weekend. I really like that area. I am going to look into this. Wouldn't mind owning a STR or two in that part of the state.

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

    @Cody McVay,

    @Jeffrey Donis:

    thanks for the suggestion… It was my understanding that a syndication investment doesn’t meet the requirements for a 1031 exchange… Do you know if there are 1031 approved syndications?

    It certainly is something to look into for my cash though. 

    0Reply
  • Michael Gilman
    Investor · Westchester, NY · Member since 2014 · 96 posts · 57 votes
    5y

    @Bob Foglia

    As others have noted, sounds like passive investing options might be best such as notes, REITS or syndications. Your highest cash flow  and cash on cash return will typically come from a syndication investing in tertiary markets, or niche strategies such as short term rentals and mobile home parks.

    1Reply
  • Mark H. Porter
    Investor · SC NC, VA · Member since 2020 · 1k+ posts · 756 votes
    5y

    Think really hard on why you want real estate over other investments.  Could you get 6% in a market investment rather than that, or probably less, in a fully passive illiquid investment?

    Real estate is HARD, that’s why it often results in great returns. Even though I have property management companies running my properties I am still called on weekends and nights because they have an issue that needs my ok.  The biggest real estate investment firms in the country have execs that work many weekends and evenings.

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

    @Bob Foglia. You’re certainly asking the right questions. As a non-accredited investor, like @Scott Wolf said, you have a handful of options to invest in syndications. That would always be my first advice for any passive investor wanting cash flow and appreciation. My second choice would be investing in an ATM fund if you can find one that includes non-accredited investors.

    If none of those work, you could look at some vacation homes to supercharge through Airbnb and VRBO marketing. I have friends doing this in Gatlinburg and Asheville.  Feel free to reach out if you want to connect with them.  Good luck! 

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