Investor · Huntsville, AL · Member since 2015 · 149 posts · 80 votes
Hi all,
So here's where I'm at.
My goal is to cash flow $4k per month ASAP. Why 4k? Bc that is roughly my monthly expenses. 1k of that is the property taxes on my home!!!! I have about 250k capital to work with and I am open to many strategies that I can implement from a mainly passive role. I make 6 figures and have phenomenal benefits that I'm just not ready to give up yet to take a more active role in my investments. I'm open to buy and hold in no worse than C neighborhoods...turnkey or otherwise, private lending, joining a syndication deal or joint venture, or anything else that makes sense. But I do want CASH FLOW CASH FLOW CASH FLOW. If anyone has any weighing in on this subject I'd love to hear from u thanks!!!!
@Charles Worth I like all you said, I am in a similar situation and a followup question is: as an accredited investor, is it better (in your opinion) to invest time and find a good relationship with a sponsor you can invest with, or do your due diligence on the various crowdfunding websites you can find out there?
On the pros, by investing chunks of 10/15k, crowdfunded deals seem to offer diversification that is not easy to achieve by directly working in syndicated deals where you have to put 50k/100k/150k min.
On the other hand, the quality of the sponsors might be much lower, and without developing a real relationship one might end up with several lemons.
My experience shows that if you go into it without being properly equipped (ie good team in place, good business model, and good understanding of the market you are investing in), you will make a lot of mistakes. I know the areas to invest by doing some due diligence via internet searches, calling professionals in the area, and even speaking to my contacts here in NY. I always get inspections done prior to closing on any building. Finding reliable people is the one disadvantage in out of state investing as it can sometimes just be a trial and error process but it is what it is. For us, the pros definitely outweigh the cons.
New York, NY · Member since 2016 · 25 posts · 1 vote
9y
Steve Kontos Good morning steve thanks so much for taking the time out to respond to me it is greatly appreciated. I recently attended a 3 day seminar on real estate in the city and the strategy they suggested we utilize to get started was to flip foreclosures, in your opinion is this a viable way for an individual with little cash reserves to get started and if not what would you suggest ?
Truth be told...no. I see on BP that sometimes people try to flip or wholesale before going into buy and holds. If your heart is not in that specific type of investing, your not going to do well.
I didn't have a ton of money when I started either HOWEVER I used various ways of leverage to make it work. For example my very first deal I leveraged my credit to make the deal happen. In today's world, access to different forms of leverage are readily available BUT you must be disciplined in approaching such methods.
Professional · Brooklyn, NY · Member since 2017 · 624 posts · 147 votes
9y
@Chris Mignone If it is $250,000 in cash... unless you are just extremely attached to rentals, have you looked at rehabbing and flipping? Flipping isn't everyone's cup of tea but its slightly more aggressive a strategy; upside (downside), you can double (or loose) your money faster. Ideally you want deals were you use as much leverage as possible without using cash unless for down payment etc., but $250,000 cash can fund quite a few flips based on what market you were in.
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
9y
@Chris Mignone Shoot me a message and I can send info (or for quicker info, shoot me an email at my email address).
I'm going to go out there myself in July to plan to buy a couple of the properties. From that trip I'll plan to do a full location and property and all that report based on my own touring of everything. But can chat plenty in the meantime!