Helping mother-in-law find cashflow
Rental Property Investor · Laguna Niguel, CA · Member since 2015 · 142 posts · 98 votes
Helping mother-in-law find cashflow
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Ian IppolitoBusiness Member
Investor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes@David Hodge, UGGH...I shuddered as I read all the self-promoting "advice" you have received so far!
My 1st recommendation would be before taking anyone's advice, to look at how they make their money, and what potential conflict of interest they might have in giving you the advice. If a person only sells hammers, he/she will try to convince you that the entire world is a nail. These are not good sources of advice.
I am not selling anything. I do have a website on Real Estate Crowdfunding, but it is not for profit and simply put up as a service to the investor community. I'm in investor, not a salesperson.
Here's my opinion. Since your mother is about to retire, and it sounds like she will be living off the income, then the key thing to avoid is volatility.
For anyone else, an investment in a public REIT (i.e. on the stock market) might be a good bet because they do perform well in the long term. However, in the short term it has the volatility of the stock market, which cycles much faster and more severely than the volatility of the direct real estate market. So, in my opinion this would be a very poor investment vehicle for your mother-in-law.
You mentioned she is not very knowledgeable about real estate. Would you be helping her and perhaps are you knowledgeable? If so, then putting the money into 2 or 3 rentals in strong markets on solid properties, would be a very safe investment. I personally have 8 rentals here in Tampa, that are performing very well, and are a relatively safe and non-volatile investment.
Since she is accredited, another option is Real Estate Crowdfunding. However, it's not for unsophisticated/unknowledgeable investors. There are some good opportunities and there are some complete ripoffs, and an investor has to be willing to take the time to educate themselves on the basics of real estate, then sift through all the different sites, and then finally drill into the details of the investments on the top 4-5 they are interested in. Perhaps this might be something you'd be willing to do for her. If so then I'd be happy to answer any questions you might have. On the other hand if not, then I wouldn't recommend this either.
@Mark Robertson recommended AlphaFlow, which I would 2nd as a good option for your mother-in-law. It doesn't require understanding real estate and allows her to diversify.
In my opinion, she definitely should not invest in any of the nonpublic REITs mentioned above from crowdfunding sites like Fundrise and RealtyMogul. As an accredited investor, she has access to much better options. In my opinion, neither site puts enough skin into the game (less than 1% versus a typical 10%+) to properly align themselves with investors. Both of them charge significant organizational expenses (2 to 3%) which is extremely high. Neither of them has a long track record, and they also may charge up to 5% on the backend when she needs to withdraw some of the money to live off of. I believe these are better suited for nonaccredited investors who don't have better options.
The Real Estate Crowdfunding Review
33 Replies
- Investor · Downers Grove, IL · Member since 2015 · 1k+ posts · 955 votes9y
I am not a financial adviser. But here's my opinion.
Even with a REIT, she may still lose money. Since she is close to retirement, preservation of capital is probably the most important thing. Perhaps buy several CDs at different maturity terms and stagger them.
Investments always has its own risks, especially real estate.
If you know of any seasoned PROVEN investors with a track record, maybe she can look into lending her money at a higher higher interest rate that what the banks are paying, and less than what the HML are charging. Again, it has its risks.
- Rental Property Investor · Orange County, CA · Member since 2016 · 512 posts · 374 votes9yDavid Hodge Why don't u suggest turnkey providers like Memphis invest. They are great cash flow providers in a passive investing mode Or look for a condo townhouse or an entry level sfr in Denver where cash flow will be better than your neighborhood My two cents
- Professional · San Francisco, CA · Member since 2014 · 876 posts · 301 votes9y
@David Hodge, if she is an accredited investor you might consider investment into DSTs. They are hands-off, institutional grade real estate investments, and they allow you the option to diversify. Investors can buy into institutional grade $50-125M projects with as little as $100,000. Professionals with decades of experience and very impressive track records do all the heavy lifting for you. You get potential cash flow, tax shelter and appreciation. Loans are non-recourse.
- Flipper/Rehabber · York, UK · Member since 2013 · 895 posts · 453 votes9y
You might want to check out @Jay Hinrichs turnkey rating website, or the option of contributing to a syndicated project. Look up @Joe Fairless or @John Cohen
- Member since 2016 · 13k+ posts · 12k+ votes9y
I would agree you should keep her out of direct real estate investing. One bad tenant could be financially devastating.
REITs are reasonably safe but there are other similar options. What she really needs is security which will come with a lower return. The higher the risk the greater the return. Real estate is high risk.
- Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes9y
@David Hodge what does she know about Real Estate? By the tone of your post, it would seem like she knows nothing and has no experience. Money and no knowledge are like carrying a loaded shot gun in the woods in the dark. It doesn't sound like she would be an accredited investor (networth of $1M plus) so she would not qualify for syndication deals. I don't really think there are any real estate options that I would recommend. Now if she wants to invest lots of time and some money, I think she could figure out a way to make real estate work for her. If she won't invest the time, then probably CDs are the way to go.
- Rental Property Investor · Laguna Niguel, CA · Member since 2015 · 142 posts · 98 votes9y
Thank you all for the replies.
@Curt Davis I have a crazy day today but I'll try to give you a call either today or tomorrow!
@Leslie Pappas I'm not familiar with DSTs but I'll look into that!
@Micki M. Other than owning her own residence and a bad rental in California decades ago, she has no real estate investing experience. I agree about the loaded shot gun. I would rather her get less return but something that has a fairly low chance of her losing money. She might be accredited. She is married and I believe her and her husband combined make over $300K. If I'm wrong, they still might meet the net worth requirement. They sold their primary for over $1M so I'm pretty sure their net worth would be over that. I would need to confirm to be sure.
I don't think she's going to be happy with the CD idea. She wants a better return than that. Would you consider a good syndication in apartments to be safer than directly investing in single family homes? I know the key here would be finding someone trustworthy. Any recommendations?
- 9yMark RobertsonPro MemberInvestor · Salisbury, NC · Member since 2014 · 313 posts · 385 votes
I had my mother in law invest in Aapha Flow fund III... They invest in crowdfunding hard money loans and its paying 8-9%. She does not have the skills to pick her on loans, so its worth the 1% fee to have a professional pick them for her. (She has to be accredited to invest with Alpha Flow) Beats the 1% CD rate she been getting.
DST's are horrible investments, they only benefit the people selling them and managing them. May make sense if you are desperate with 1031 money, but not in any other circumstance.
- 9yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
she may want to consider 1st deeds of trust.. these give cash flow and if you use any kind of due diligence you can find very good ones that pay 7 to 10%.. like anything the higher the yield on DT's the RISK goes up exponentially you can find 7% first were the borrower put 50% down in cash.. now for risk adverse and safe investing this is pretty darn good.. can refer you if you like
- Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes9y
@David Hodge so investing in apartments via syndication is not really a hands off situation IMO. You have to do a good deal of due diligence upfront. In addition, I don't think we are a great place in the market cycle right now to be getting into apartment buildings with little or no knowledge.
Really there are several good ideas here (and apartments might be one of them) but she will really need to do some learning.
If they have $1M plus, she has some time and can do some learning. What kind of returns is she looking for from real estate?
- Rental Property Investor · Mineola, NY · Member since 2014 · 838 posts · 212 votes9y
@Micki M. would love to talk more. I understand the situation and think you could have some great options. Let me know if you have some time.
- Colorado Springs, CO · Member since 2015 · 229 posts · 58 votes9y
@David Hodge, could you send me a private message? We may be able to help your mother-in-law. Thanks.
- Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes9y
Originally posted by @David Hodge:
My mother-in-law recently sold her primary residence and downsized since the kids are all moved out. She's looking for something that would provide her with good cash flow as she is very close to retiring. She doesn't care at all about appreciation. She was very interested in buying a property near where I live, Denver, until I showed her how much cash flow she could expect right off the bat. She then started asking me about purchasing in the Midwest, where you could get more CF, but I'm hesitant to recommend this due to the potential issues that are common with investing out of state. Since she doesn't have decades to recoup losses, I want her in something very safe. I'm thinking a REIT might be her best option instead of putting a bunch of money into 2 or 3 rentals. What does everyone think of this? Is there something else I should look into for her? She needs a, low risk, hands off investment that will provide cash flow right off the bad. Any recommendations would be appreciated!
"Very safe" and "high cash flow" are words that run together in cash flow markets people will pitch you like Detroit, Columbus, etc. Safer markets, with high tenant quality, usually also provide appreciation (ex. Austin, Dallas, San Antonio, Charlotte, etc...). It also depends on your management structure and you're experience (ability to effectively manage risks involved).
I could help you out. Checkout my profile and website. I can locate some deals and provide her hands-off cash flowing properties with appreciation.
Please send me a message.
- Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes9y
Originally posted by @Thomas S.:
I would agree you should keep her out of direct real estate investing. One bad tenant could be financially devastating.
REITs are reasonably safe but there are other similar options. What she really needs is security which will come with a lower return. The higher the risk the greater the return. Real estate is high risk.
Sorry, but I respectfully disagree. I worked in the securities industry for over 13 years (Blackrock, Franklin Templeton, RCM Investments, etc.). The overhead costs in a REIT are very high so your return will be diluted. Also, if you receive any, your after tax income from a REIT will likely be very low.
I've been generating 12%+ cash on cash returns on all investments outside of California for over 10 years in Austin, Dallas, San Antonio, Charlotte and other markets. These are well-built, high quality properties (class B), in great locations, with quality tenants in place and very low turnover.
He's better off getting his mother in law investing with an experienced sponsor with strong ability to effectively manage risk. She can invest as a limited partner in a multifamily deal or have the sponsor acquire and manage SFR property for her that generate income.
Whether a sponsor would choose to work with her would have to do with (1) her experience as an investor, (2) whether or not she's an accredited investor, and (3) how much capital she has to invest.
- Lender · Chicago, IL · Member since 2015 · 191 posts · 86 votes9y
Originally posted by @Jon Q.:
Originally posted by @Thomas S.:
I would agree you should keep her out of direct real estate investing. One bad tenant could be financially devastating.
REITs are reasonably safe but there are other similar options. What she really needs is security which will come with a lower return. The higher the risk the greater the return. Real estate is high risk.
Sorry, but I respectfully disagree. I worked in the securities industry for over 13 years (Blackrock, Franklin Templeton, RCM Investments, etc.). The overhead costs in a REIT are very high so your return will be diluted. Also, if you receive any, your after tax income from a REIT will likely be very low.
I've been generating 12%+ cash on cash returns on all investments outside of California for over 10 years in Austin, Dallas, San Antonio, Charlotte and other markets. These are well-built, high quality properties (class B), in great locations, with quality tenants in place and very low turnover.
He's better off getting his mother in law investing with an experienced sponsor with strong ability to effectively manage risk. She can invest as a limited partner in a multifamily deal or have the sponsor acquire and manage SFR property for her that generate income.
Whether a sponsor would choose to work with her would have to do with (1) her experience as an investor, (2) whether or not she's an accredited investor, and (3) how much capital she has to invest.
I'd re-read what he said- "REITs are reasonably safe". You're referring to their fees, which has nothing to do with the safety. I do not agree at all that direct investments will be considered safer than a REIT investment, but they will pay more in overall return.
- Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes9y
Originally posted by @Jim Groves:
Originally posted by @Jon Q.:
Originally posted by @Thomas S.:
I would agree you should keep her out of direct real estate investing. One bad tenant could be financially devastating.
REITs are reasonably safe but there are other similar options. What she really needs is security which will come with a lower return. The higher the risk the greater the return. Real estate is high risk.
Sorry, but I respectfully disagree. I worked in the securities industry for over 13 years (Blackrock, Franklin Templeton, RCM Investments, etc.). The overhead costs in a REIT are very high so your return will be diluted. Also, if you receive any, your after tax income from a REIT will likely be very low.
I've been generating 12%+ cash on cash returns on all investments outside of California for over 10 years in Austin, Dallas, San Antonio, Charlotte and other markets. These are well-built, high quality properties (class B), in great locations, with quality tenants in place and very low turnover.
He's better off getting his mother in law investing with an experienced sponsor with strong ability to effectively manage risk. She can invest as a limited partner in a multifamily deal or have the sponsor acquire and manage SFR property for her that generate income.
Whether a sponsor would choose to work with her would have to do with (1) her experience as an investor, (2) whether or not she's an accredited investor, and (3) how much capital she has to invest.
I'd re-read what he said- "REITs are reasonably safe". You're referring to their fees, which has nothing to do with the safety. I do not agree at all that direct investments will be considered safer than a REIT investment, but they will pay more in overall return.
Really? Define "safe".
- Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes9y
Originally posted by @Jon Q.:
Originally posted by @Jim Groves:
Originally posted by @Jon Q.:
Originally posted by @Thomas S.:
I would agree you should keep her out of direct real estate investing. One bad tenant could be financially devastating.
REITs are reasonably safe but there are other similar options. What she really needs is security which will come with a lower return. The higher the risk the greater the return. Real estate is high risk.
Sorry, but I respectfully disagree. I worked in the securities industry for over 13 years (Blackrock, Franklin Templeton, RCM Investments, etc.). The overhead costs in a REIT are very high so your return will be diluted. Also, if you receive any, your after tax income from a REIT will likely be very low.
I've been generating 12%+ cash on cash returns on all investments outside of California for over 10 years in Austin, Dallas, San Antonio, Charlotte and other markets. These are well-built, high quality properties (class B), in great locations, with quality tenants in place and very low turnover.
He's better off getting his mother in law investing with an experienced sponsor with strong ability to effectively manage risk. She can invest as a limited partner in a multifamily deal or have the sponsor acquire and manage SFR property for her that generate income.
Whether a sponsor would choose to work with her would have to do with (1) her experience as an investor, (2) whether or not she's an accredited investor, and (3) how much capital she has to invest.
I'd re-read what he said- "REITs are reasonably safe". You're referring to their fees, which has nothing to do with the safety. I do not agree at all that direct investments will be considered safer than a REIT investment, but they will pay more in overall return.
Really? Define "safe". No one said ALL direct investments are safer. That's a rediculous comment.
- Real Estate Investor · Lake Havasu City, AZ · Member since 2015 · 72 posts · 60 votes9y
@David Hodge You have posted something that will draw everyone that is looking for money. They will all promise what you want and some of them may be able to deliver. There is a fair amount of Due Diligence on your part to separate the wheat from the chaff. I would recommend using all of the suggestions as ways to potentially accomplish what you are looking to do and let the money grab people give you ideas, but don't give them any money. Education is very valuable in this type of investing, as always with investing it is nearly impossible to guarantee any certain results.
I agree with @Jay Hinrichs comments above and would encourage a strategy that puts your mother-in -law in a position that loses last, not in a position that she could potentially lose up front.
I have sent a message privately and would be happy to help educate on an option that could be a good fit. This option would not be placing any money with me or any company that I am affiliated with. You could do this in your own backyard, which could increase the comfort level considerably.
Most of all I wish you well in your endeavor, and wish you well in your investments.
- Lender · Chicago, IL · Member since 2015 · 191 posts · 86 votes9y
Originally posted by @Jon Q.:
Originally posted by @Jon Q.:
Originally posted by @Jim Groves:
Originally posted by @Jon Q.:
Originally posted by @Thomas S.:
I would agree you should keep her out of direct real estate investing. One bad tenant could be financially devastating.
REITs are reasonably safe but there are other similar options. What she really needs is security which will come with a lower return. The higher the risk the greater the return. Real estate is high risk.
Sorry, but I respectfully disagree. I worked in the securities industry for over 13 years (Blackrock, Franklin Templeton, RCM Investments, etc.). The overhead costs in a REIT are very high so your return will be diluted. Also, if you receive any, your after tax income from a REIT will likely be very low.
I've been generating 12%+ cash on cash returns on all investments outside of California for over 10 years in Austin, Dallas, San Antonio, Charlotte and other markets. These are well-built, high quality properties (class B), in great locations, with quality tenants in place and very low turnover.
He's better off getting his mother in law investing with an experienced sponsor with strong ability to effectively manage risk. She can invest as a limited partner in a multifamily deal or have the sponsor acquire and manage SFR property for her that generate income.
Whether a sponsor would choose to work with her would have to do with (1) her experience as an investor, (2) whether or not she's an accredited investor, and (3) how much capital she has to invest.
I'd re-read what he said- "REITs are reasonably safe". You're referring to their fees, which has nothing to do with the safety. I do not agree at all that direct investments will be considered safer than a REIT investment, but they will pay more in overall return.
Really? Define "safe". No one said ALL direct investments are safer. That's a rediculous comment.
Fair point, you didn't say that ALL direct investments are safer. But the first part of my comment remains.
- Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes9y
Originally posted by @Jim Groves:
Originally posted by @Jon Q.:
Originally posted by @Jon Q.:
Originally posted by @Jim Groves:
Originally posted by @Jon Q.:
Originally posted by @Thomas S.:
I would agree you should keep her out of direct real estate investing. One bad tenant could be financially devastating.
REITs are reasonably safe but there are other similar options. What she really needs is security which will come with a lower return. The higher the risk the greater the return. Real estate is high risk.
Sorry, but I respectfully disagree. I worked in the securities industry for over 13 years (Blackrock, Franklin Templeton, RCM Investments, etc.). The overhead costs in a REIT are very high so your return will be diluted. Also, if you receive any, your after tax income from a REIT will likely be very low.
I've been generating 12%+ cash on cash returns on all investments outside of California for over 10 years in Austin, Dallas, San Antonio, Charlotte and other markets. These are well-built, high quality properties (class B), in great locations, with quality tenants in place and very low turnover.
He's better off getting his mother in law investing with an experienced sponsor with strong ability to effectively manage risk. She can invest as a limited partner in a multifamily deal or have the sponsor acquire and manage SFR property for her that generate income.
Whether a sponsor would choose to work with her would have to do with (1) her experience as an investor, (2) whether or not she's an accredited investor, and (3) how much capital she has to invest.
I'd re-read what he said- "REITs are reasonably safe". You're referring to their fees, which has nothing to do with the safety. I do not agree at all that direct investments will be considered safer than a REIT investment, but they will pay more in overall return.
Really? Define "safe". No one said ALL direct investments are safer. That's a rediculous comment.
Fair point, you didn't say that ALL direct investments are safer. But the first part of my comment remains.
Jim,
Whether not an investment is "safe", comes down to how you define safe. To run a REIT often requires so much spending on operational cost, fees, etc. and they are so diversified as to render your return significantly lower, for me prohibitively lower, than investing more direct in the asset, either through an LP with a reputable and very experienced partner or directly.
If you define "safe" as being so overly diversified as to generating low returns...you may be right! She will not achieve high-income through a REIT. Show me a REIT that consistently generates a 12%+ return solely from income investing in high-quality properties...they don't exist. I know many experienced investors that are doing so consistently and they are able to effectively manage/minimize risks by acquiring only properties at discount, with clear upsides, experienced property management, and understand market cycles...lots of this comes with experience.
If you define "safe" as generating an above market return with lower commensurate risk, then that is done by investing in an experienced sponsor who is fully aware of all risk and has developed methods to minimize them (handicap them). Risk is usually commensurate with return, but in real estate, through experience you can develop techniques to effectively manage/minimize these risks.
If she's seeking to generate a high level of income and do so at less risk, I feel that the best option is to locate a reputable and very experienced sponsor. Although that would require more due diligence, it would maximize her income and return. If they conducted adequate due diligence, the predominant risk would be that her money would be locked up for the full investment term (usually 7 years).
- Investor · Columbus, OH · Member since 2016 · 29 posts · 3 votes9y
@David Hodge I have a property that I just got under contract today that would be perfect for your mother-in-law. Please PM if you have any interest.
- Investor · Beverly, MA · Member since 2014 · 103 posts · 70 votes9y
Hi @David Hodge. Here are some thoughts for your consideration:
- -Current yields on CDs are around 1%. So even if your mother-in-law had $1M, I doubt she would be happy to live on $10k/year
- -REITS are essentially stocks. They are publicly traded and their value is based on what the market is willing to pay for them. That being said, there are several new crowdfunding sites that have started REITS that offer regular dividends. RealtyMogul, Fundrise and RichUncles are a few that come to mind.
- -Direct investment will provide the highest yields along with tax benefits (if she is accredited, i.e. made $200k/year if single $300k if married for previous 2 years, or her net worth is $1M excluding her primary residence). If you go this route, the key will be to identify sponsors with substantial track records of success. There are many on this platform. Ask them for the listing of projects and results achieved. Ask what markets they are in and why? Ask who is on their team and what their experience is. Ask, ask, and ask some more.
It sounds like you are doing your homework and not blindly turning her money over to a financial adviser and hoping they will perform. If you have any specific questions, please feel free to reach out.
- 9yIan IppolitoBusiness MemberInvestor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
@David Hodge, UGGH...I shuddered as I read all the self-promoting "advice" you have received so far!
My 1st recommendation would be before taking anyone's advice, to look at how they make their money, and what potential conflict of interest they might have in giving you the advice. If a person only sells hammers, he/she will try to convince you that the entire world is a nail. These are not good sources of advice.
I am not selling anything. I do have a website on Real Estate Crowdfunding, but it is not for profit and simply put up as a service to the investor community. I'm in investor, not a salesperson.
Here's my opinion. Since your mother is about to retire, and it sounds like she will be living off the income, then the key thing to avoid is volatility.
For anyone else, an investment in a public REIT (i.e. on the stock market) might be a good bet because they do perform well in the long term. However, in the short term it has the volatility of the stock market, which cycles much faster and more severely than the volatility of the direct real estate market. So, in my opinion this would be a very poor investment vehicle for your mother-in-law.
You mentioned she is not very knowledgeable about real estate. Would you be helping her and perhaps are you knowledgeable? If so, then putting the money into 2 or 3 rentals in strong markets on solid properties, would be a very safe investment. I personally have 8 rentals here in Tampa, that are performing very well, and are a relatively safe and non-volatile investment.
Since she is accredited, another option is Real Estate Crowdfunding. However, it's not for unsophisticated/unknowledgeable investors. There are some good opportunities and there are some complete ripoffs, and an investor has to be willing to take the time to educate themselves on the basics of real estate, then sift through all the different sites, and then finally drill into the details of the investments on the top 4-5 they are interested in. Perhaps this might be something you'd be willing to do for her. If so then I'd be happy to answer any questions you might have. On the other hand if not, then I wouldn't recommend this either.
@Mark Robertson recommended AlphaFlow, which I would 2nd as a good option for your mother-in-law. It doesn't require understanding real estate and allows her to diversify.
In my opinion, she definitely should not invest in any of the nonpublic REITs mentioned above from crowdfunding sites like Fundrise and RealtyMogul. As an accredited investor, she has access to much better options. In my opinion, neither site puts enough skin into the game (less than 1% versus a typical 10%+) to properly align themselves with investors. Both of them charge significant organizational expenses (2 to 3%) which is extremely high. Neither of them has a long track record, and they also may charge up to 5% on the backend when she needs to withdraw some of the money to live off of. I believe these are better suited for nonaccredited investors who don't have better options.The Real Estate Crowdfunding Review - 9yMark RobertsonPro MemberInvestor · Salisbury, NC · Member since 2014 · 313 posts · 385 votes
@Ian Ippolito I was going to post I pitty the fool that post on BP saying they have XXX dollars and does not know what to do with it. You beat me to the punch. The public "self promoting" advice in this thread is egregious, but can you imagine what his inbox looks like?
Be very very careful when strangers come a calling with perfect advice for your money.. "just private message me and I will take care of your money problem"
- Rental Property Investor · Laguna Niguel, CA · Member since 2015 · 142 posts · 98 votes9y
Thank you all for the responses!
@Ian Ippolito I really appreciate the detailed, unbiased response. I'm going to check out AlphaFlow since it was mentioned multiple times.
I am by no means experienced yet, but I have spent the last two years learning rental investing and I now own 2 rentals. The problem is, I'm in Denver which is more of an appreciation market. That's perfect for me because at this point, I'm looking to build my wealth, not retire off cashflow. My in-laws are looking for cashflow which is harder to come by here. If I lived in the Midwest, it would be a no brainer... I'd buy her some rentals and manage them for her. Since I'm in a more expensive market, it's a little more complicated.
One option I'm leaning towards is this.... Buy a rental here in Denver where we each put in 50%. I would then give her ALL the cashflow but take all the proceeds upon selling myself (except for the money she put into it). Does that sound reasonable? That will double her COC return (since she's only putting down 50%) and would double my return on appreciation (since I'm putting the other 50%). Opinions? Any pitfalls here? I know the obvious one would be investing with family can be complicated but I feel she really would be easy to work with.
I appreciate all the great feedback! I might respond to some of you personally but rest assured, I won't be putting any of her money into anything I don't fully understand.
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