Honest question, what would you do with $100k right now.

16 Replies

For those of you who have been doing this for a long time or have experience/inside knowledge, if you had $100k, where would you put it, spend it, use it at this point in 2018 to grab some great funds or gains?  I would love to hear short term or long term ideas.  Longer story, we've always invested in apt buildings but are looking to make some "quicker" money in the short term with the $100k we have available to spend.  Living in the Phoenix area but of course will look anywhere and do not have a ton of knowledge on flips, meaning have never done them...so again curious if you had $100k, knowing what you know now, where or what would you do with it?

Appreciate the responses.

You could become private money lender and loan to an investor for handsome gains. Or you could purchase RE yourself with that cash - either fix & flip or buy & hold.

Sammy, like the private investor standpoint but obviously have no clue how to even get started with that.

Originally posted by @Christian Beebe :

For those of you who have been doing this for a long time or have experience/inside knowledge, if you had $100k, where would you put it, spend it, use it at this point in 2018 to grab some great funds or gains?  I would love to hear short term or long term ideas.  Longer story, we've always invested in apt buildings but are looking to make some "quicker" money in the short term with the $100k we have available to spend.  Living in the Phoenix area but of course will look anywhere and do not have a ton of knowledge on flips, meaning have never done them...so again curious if you had $100k, knowing what you know now, where or what would you do with it?

Appreciate the responses.

 Sounds to me like you already decided that you want to flip since your goal is to make quicker money in the short term. There's really not to many other "good" ways to do that. You could try going to Vegas and putting it all on black...but again...not really a "good" way to make quicker money.

Generally speaking real estate is a get rich slowly way of investing and not a way to get rich quick...so maybe there are other strategies for making quick money in real estate that others can suggest but I just don't know what they are. 

Out of curiosity if you've had success with apartments that lead to you having this extra $100k....why bother changing when you have a working recipe at this point? 

James, apt buildings are a good monthly and long term payout but looking for something that we can do with a "quicker" turn that allows for short term larger gains, like flipping.  Flip enough and we can get into more apt buildings, etc.  Been doing this long enough to realize that nothing is quick but it's definitely quicker than apt building investing.  

Right now for me, i would buy mobile homes to fill the park we are working on .  We are using our money if we have it or borrowing at 8% from family to buy homes cash for better deals and get our lots filled.  Our motive with them is not profit but the income on lot rent and equity gains on occupancy gains ( though not gained a sale or refi  - at this point to early to see if we would want to refi ) 

@Christian Beebe  

Personally, I would invest it in a syndication on the GP side. But, not everyone has the ability to do that. This would allow me to learn more about apartment syndication while making some money. 

But you say you want "quicker" money, so I guess I'd find a flip. That's about as "quick" as it gets in this business isn't it?

Hey @Christian Beebe

100K in cash has you sitting pretty nice with a bunch of opportunities ahead. If I were you, I would look into leveraging that cash and maybe getting into a project or two for "fix&flips". You can use hard money to leverage your cash, and if you find the right projects you should be in and out of rehab in 2 months with the properties on the market for resale. 

Quick easy ROI as long as you have the right team that is reliable and sticks to your time frame.

Christian,

As one of your mortgage bankers, here is some useful information. In addition to multifamily conventional mortgages and SFR rental loans, we now also offer a Fix & Flip loan program. The loan works like this: You could get offered a line of credit based upon your cash on hand. As you already know, leverage is the key to making the most money in the real estate business. In short, here is the way it would work for you: The line of credit would be about 5X your current liquid assets. It would have an initial term of 12 months. During that time, you can access the line as many times as you want. The line would provide up to 90% of the acquisition and rehab cost. So in effect, only about $50k of your money will be used and $500k of the LOC money. Now you are using $550k to make even more money. Look forward to hearing from you again soon. Thank you for your prior business.

Kevin Meehan

@Christian Beebe You've received a ton of good advice here. I agree with what @James Masotti said, looks like you set your mind on flipping. Just keep in mind, flipping produces ordinary income which is taxed based on your tax bracket. If you switch to a long term investing and invest in actual assets, you may be better of with long term capital gains or even be able to use the 1031 exchange route to delay paying taxes on your property. 

Bottom line, whatever way you chose, always consult with your tax advisor as to how it's going to impact you from a tax perspective.

Best!