Retired baseball player

7 Replies

Retired baseball player with 2 million dollars to put into investments. What would be the first step into investing into real estate?

Updated over 2 years ago

Asking for a couple colleagues I know who are new to real estate and want to get started.

Hold on to your money tightly when making an announcement like that. People will be coming out of the wood works. First step would be to get educated. Figure out which aspect of real estate you want to be involved, which asset class, etc. Spend a lot of time reading books, reading forums such as BP, and listening to podcasts. At some point you'll need to take action but it's not right away.

@Stefen Romero education! It’s a cutthroat, competitive business. Unless you’ve got a very trustworthy adviser you can count on, you just need to start reading and learn what you can before diving in, in my opinion.

If you want to learn as you go, start small. Don’t dump 2 mill into your first deal.

Before you do anything with that money spend some time and get educated.  Announcing something like that will have all sorts of people knocking on your door for your money.

Start listening to the podcasts and perusing the forums.  Checkout some real estate books too.

Once you feel somewhat comfortable start looking on the MLS for properties and putting numbers into the calculator like you are buying them. Do these pretend buys for a while until you get comfortable running those numbers.

I don't recommend buying a huge apartment building for your first deal.  Maybe start small with a Single family home or a duplex.  Once you get some experience under your belt you will be able to make some adjustments to help you accomplish your goals.  Ideally you would want to spread that money out into multiple properties instead of just one big one.  Whether you pay cash for properties or decide to put down payments on them is totally up to you.  Either way will work.  One cash flows right away and the other cash flows partially.  I also recommend finding yourself a good CPA with knowledge in Real estate.

@Stefen Romero everyone is correct with educating yourself.  Just remember, it is your money and your decision on what to invest in or not.  I would look around and make the determination on a few things before ever talking to anyone

1)How long are you comfortable keeping your money out? (3 months vs 3 years)

2)Do you want to partner or do things on your own?

3)Think about geography and where you would want to invest (personal example, I am looking out of state because there are better opportunities)

4)What type of real estate interest you (would recommend talking with several different professionals in different asset classes ex: retail, housing rentals, development, etc...)

Once you get a little better idea from thinking of those things, you can tailor and search for what interest you and who you may want to talk to.

Welcome to BP and best of luck to you!

@Stefen Romero I coach and mentor several very wealthy individuals, investors and syndicators and our primary focus first and foremost is preservation of capital and generational wealth.

When you approach real estate and business investments from that standpoint it really changes the perspective and brings a level of clarity to the decision making process.

Real Estate is a diverse asset class with lots of options and opportunities. They key is understanding how to determine a real opportunity that is alignment with your goals and investment strategy.