If you had 100k to invest.... But won't take on debt...

3 Replies

Fellow investors,

Someone recently came to me, who is in their 60s with 100k in cash that they want me to invest. Because of their age and risk tolerance they don't want to take on any debt, but would like this money invested for 5-7 years. 

Any thoughts on some good options? I'd like to get at least 10% on it. 

Some things I have thought of...

Finding a 4 plex somewhere in a B area (if possible)

Passively investing in a commercial real estate deal (but usually around 6% and holding around 10 years

Note investing

Turnkey property(s) and sell 5 years later

Any ideas are appreciated!!! 

@Jeff Stansberry your best bet with least risk is investing passively as an LP on a syndication. I see plenty of deals that are 5-7 year holds with mid-teens IRR, which means even if you're getting a preferred return of 6-10%, after the sale, the expectations are to have a much higher annualized return 15-20%. I am happy to recommend some experienced syndicators with active deals right now, if you DM me.

My suggestion, have him become an PML. If he funds a flip, with the exception of a 12% return and is picky on what he loans on, he could fund everything from the purchase to the sink faucet and help the flipper, the end buyer and himself. Being picky could let him do 3-4 flips a year and help his bottom line grow pretty quick.