What would you do with the current market and 100k to invest?

I would find a partner with $100k to invest and take down a C+ or B- multifamily property with as many units as I possibly could and split the equity and cashflow 50/50.  If you could bring in a third partner with a high net worth (if needed), then you could possibly take down a multifamily project valued around $1.00M, add $250K in value and then refinance out with a loan intended for small balance multifamily projects (like a Freddie Mac Small Balance Loan).

That'd be the most killer situation I can think of with $100k cashola.

It depends. :) There are so many options, it just depends on what your goals are. 

Using some of that as a down payment for a multifamily property to house hack would be excellent (and hopefully you would still have some left over to pick up a few more properties). Also, if you can easily qualify for a mortgage, then I would look into buying properties on 30 year conventional mortgages (or owner finance if you can!) that cashflow well. 

If your market makes sense to BRRRR, that could be another good option.

Eric, it depends on each person. For those with more capital than time, it's best to partner with someone who has the track record and expertise do find the deals for you.

You should do more of whatever you did to get the $100k then repeat as many times as you can.

Questions to make sure I do not give you my subjective opinion, but an educated answer...

1) do you want to be active or passive long term?

2) What is your end goal of real estate, why are you into real estate?

3) Are you comfortable investing out of state?

4) Are you ok having that capital locked up for 3-7 years?

----

my subjective thought...

Me personally. Find a syndication partner like @Will Fraser said with those terms he listed. I would want someone who has experience through the last recession.

@Bobby Shell

1) do you want to be active or passive long term? 

Active investor

2) What is your end goal of real estate, why are you into real estate?

My end goal is to become financially free, and still choose to work not because i have to but because i want to work.

3) Are you comfortable investing out of state?

Yes, but with someone i can trust locally..

4) Are you ok having that capital locked up for 3-7 years?

yes

I agree that i would partner up with someone, I am attending local meet ups but so far i haven't found anyone to partner up with..

@Eric Oszczypala

Looks like you wanted to know what each of us would do. I think most posters thought you were asking what YOU should do. Not sure which it is, but I'll tell you what I would do

Get very specific 

#1 Buy Bitcoin

#2 Find distressed multi family with cosmetic requirements. Fix, rent, keep the LTV or initial investment to ARV low. Would be a very specific property given the market and what timing appears at the moment.

#3 Find a REIT that has been around for at least 15 years, research their performance 2009 - 2013

@Eric Carr

I wanted to see what would someone with 100k do with the current market, and to be more specific this is in regards to real estate investing..

@Eric Oszczypala

That's exactly what I understood. 

I'd get very specific, lower my risk and stick to the new guidelines, and do one of the things I mentioned above. 

@Eric Oszczypala

Step 1: use the BP search function to find the other million threads that ask this same question

Step 2: realize BP search function isn’t the best so switch to google

Step 3: realize this question is incredibly personal and dependent on risk tolerance and goals etc

Step 4: profit

@Eric Oszczypala ...three major questions.

1) What level of income would you need to meet your definition of financially free?  

2) What is your reason for wanting to become financially free early in life?  

3) What's your time-frame?  5 years....10 years....20 years???

More specific info from you should help us give better answers.

@Erik W.

1) What level of income would you need to meet your definition of financially free? 

$10,000 a month would be ideal

2) What is your reason for wanting to become financially free early in life?

I don't want to worry about money, i want to have extra income to help out and 10k would be enough.

3) What's your time-frame? 5 years....10 years....20 years???

10 yrs

More specific info from you should help us give better answers.

@Eric Oszczypala

Okay that helps a little.

$10,000 / month (after taxes, I assume?) means $120,000 income per year.  At that income level, figure you will probably be somewhere in the 10-23% tax bracket, depending on how much you are earning from tax-favored/tax exempt assets, how much depreciation you have, and about two dozen other factors that would take too long to go into here.  Let's just say you'll probably need around $150,000 / yearly income to get an after-tax income of somewhere in the ballpark of that level of income.  

In raw terms, you need your $100,000 start up capital to grow to somewhere around $1.1 to 1.4 million in a decade, without risking it on crazy ideas or long-shot type investment that could possibly lose it all.

My suggestion for that kind of growth would be high value add projects like purchasing distressed commercial real estate (multi-unit residential) in a high growth market with some cash partners, rehabbing and increasing rents substantially, then exiting within 2-3 years of stabilizing the project and moving on to the next.  One-at-a-time flips are going to take too much time finding and closing deals.  3 good sized turn around/value adds ought to be enough, I think.

The only other thing i can think of would be note investing in a self-directed, inherited Roth IRA. Why a ROTH? Growth and distributions are tax free, so you'd only need to generate about $1.0 - $1.1 million to throw off enough cash to attain $10K month income. Why self-directed? Because no typical IRA custodian will allow you to flip notes. Why inherited? Because if you inherit an IRA (even a Roth) and hold it for 5 years or more, you can make withdrawals at any point thereafter tax and penalty free, regardless of age. Yes, even the earnings! Why notes vs. flips or rentals? Too much risk of running up against self-dealing laws that are strictly prohibited and heavily penalized with the intense day-to-day management of home rehab and flip projects, whereas with notes you're simply buying and selling paper just like you would stocks or mutual funds.

That's going be tough to do. Not saying it's impossible, but you're going to work HARD for the next 10 years and develop a fairly specialized skill set.  You're basically going to be doing work that is paid on par of a high-level executive in a mid-sized company or a medical specialist like an open-heart surgeon.  Expectations & performance levels will be likewise intensive.  Good luck and best wishes!

P.S.  One last thought...you said the reason for doing all this is you don't want to worry about money.  I've met people who make $1 million per year who still worry about money.  $10,000 / month is not a magic number where all worries disappear.  What I think is more important is to have a good balance of life expectations and goals that conform to the level of income you have, no matter what that income is. I've met very content, joyful people who never made more than $50,000 / year.  They have a sense of balance and purpose that transcends their bank account.  I think before you spend the next decade working your tail off, you might give more consideration to precisely what you'll do with all the time and extra mental capacity you'll have by not worrying about money.  That should also help you plan out your projects, because it would be ironic and somewhat silly to spend the next 10 years freaking out wondering if your next move was going to bankrupt you.  

Giant bottle of Mad dog -6$

Pack of newport 100’s - 9$

99,985 scratch off lotto tickets -99,985$

Cross my fingers and hope for a big payday

@Eric Oszczypala if you were to hand me $100k today, I would...

1) Rehab a multi family apartment building in the Midwest (6-12 units)

2) Refi apartment building and use cash flow to live off

3) Use cash to flip houses for the next 5-10 years

4) Use profit proceeds to purchase 4+ bed houses in Las Vegas and rent by the room

The only course correction I would consider is if there is some sort of major downturn and home buyers aren't able to purchase houses, then I'd either flip houses buying and selling on seller financing terms or switch over to rehabbing only small apartment buildings.

@Erik W.

Great input, I agree with you on people having 1 million and still worry about money.  I want to live a normal life, nothing too crazy, just having extra cashflow monthly would be very helpful, plus still working... I have multiple rental properties at the moment but trying to figure out if going with something bigger as my next move would be better in regards to creating better cashflow.

@Eric Oszczypala BUILD SELF STORAGE!

Good question! What I would do (and did do recently) is divide the 100k into two or three different multifamily syndication offerings for diversified passive income. Assuming you meet the minimum investment and accredited requirements for each offering (if applicable). Best of luck! 

I would do your homework and see your time availability. Do you have the time to handle a deal if not look to invest with someone in some deals. See what type of deals you want to do Multifamily or retail or office. Consume a lot of data and speak to a lot of folks before making a decision.

@Will Fraser

Hmmm. Really??? I might want in on that

@Greg Dickerson

I did the stock mkt but i want out and want good cash flow

@Eric Oszczypala

Yes I'm in the same boat You say locked up to to 7 years you're not counting the cash flow??right

Originally posted by @Gina Cardarella :

@Greg Dickerson

I did the stock mkt but i want out and want good cash flow

Yes it’s time to cash in on equities for sure. Lots of great options for cashflow in commercial and multifamily.