in what niche to invest $100.000?

5 Replies

I am a chemist , and i want to change completely  the direction of my life, to be a real estate investor.

i read a lot of books, to get more knowledge,and have a solid picture before i start involving investing in real estate. According to my knowledge, this business is very diversified , each category has many variables that are related to each other,wich makes it hard for beginners to take a good action.

i m looking for guidance and answer for my following question.

i have $100.000 to invest,  based on your experience, and knowledge , would you tell me, in wich direction and steps,  i have to take to penetrate  successfully the world of real estate investment?

 Any answer is appreciated.

     thanks

i

Look into multifamily investing! Remember to leverage your capital.

@Simo Anejarn More info would be needed to answer your question. You need to determine what you're trying to accomplish with real estate, how much you want to be involved, how much risk you want to take and what skills you bring to the table. Here's a few questions to get you started.

Are you looking to make larger chunks of money quickly, small additional income each month, long term wealth building?

Do you have a lot of free time you would enjoy spending on this?

How much risk are you comfortable with?'

Are you handy with DIY projects in your own home?

Are you good at managing contractors/others working on projects for you?

Would you be good/comfortable with managing tenants?

Are you good at managing a budget?

The Real Estate Guys (another podcast) put this pretty well. They say you need to define your 'personal investment philosophy' before you get started.

Generally if you want to do it yourself I would recommend researching markets near you, targeting one and buying a small house or duplex and learn by doing.

Otherwise you can become an equity or debt partner with someone actively doing it and learn that way but start small because you will also learn some lessons doing that...

Syndication is another area.  You invest a portion of the down payment on a large multi family and along with other investors you become limited partners.  Limiting your daily involvement.  Normally they pay an 8% preferred return annually and you also particiapate in any upside when the property is sold (generally within 3-5 years). Some of these deals have an irr of 20% or more.

I am invested in several.  2 in houston, 2 in ohio, so far we are only in the first year but the returns on some have been better than others.

It really depends on how much you want to be involved.

JJ

@JJ GONZALEZ II Syndication is an area that interests me but I haven't looked into it much yet. How big are the projects that you are invested in and about how many partners are involved in each one?

The average amount they raise is between one and two million.  So if the need 2 million and only get 100k from each investor than they have 20 limited partners.  Normally its not that large.  I am in one where the total raise was 1.4 million but had only 6 investors.

So it will vary.  But as a limited partner you are not involved in the day to day this is strictly passive investing

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