$100k. What would you do?

Question

Having $100k and asking "what would you do" is too broad...So, maybe it would help to know what I have done so far and where I am financially.

Currently have two businesses.

Assets-

Business 1. 11 units composed of (1 SF) and (5 Duplex)

All properties are financed. 3 separate mortgages

Business 2. 4 units composed of (1SF) and (1 Triplex)

SF is financed and Triplex is owned

Liabilities-

Home Mortgage $165k ($1,300/mo)

Truck $15k ($700/mo)

RV $23k ($200/mo)

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Our experience has been limited to Muncie and Richmond Indiana. I have a full time job that fuels this addiction. I am very hands off and leave the majority of the work to my property managers. I have enjoyed finding property managers that are more vertically integrated (RE agent, contractor, PM). Not sure if that's everyones preference, but it definitely makes it easy on my end, sourcing from one location for everything I need. All of these properties are residential rentals (in case that wasn't clear). All of these units cash flow "fairly" well and the businesses support themselves, but not much more than that. It's a slow gain and a more long term goal with what I currently have.

So, given the information above...What would you do with $100k?

I am willing to try something different.

What opportunity did you take that changed your business for the good?

Would you put the money towards liabilities?

I am very torn and need advice! Thank you in advance!

Taylor L. · Answer

@Ben Gordon Re: asset protection - I can't elaborate because I'm not a professional! I would probably invest in some training on the topic first. The Rich Dad Asset Protection guy is Garrett Sutton. He's written a few books.

I interviewed Brian Chou from Barth Calderon, his website is here. You might consider having a call with him just to see his thoughts. Another knowledgeable asset protection guy, and very friendly.

There might be some experts in Cincy you could go to as well. While you're there check out Joe Fairless's meetup! Want to talk about a monster business? Joe built monster businesses. The next one is 4/30. Hit the Google machine to find that

The main reason asset protection came to my mind first is because you said you have 2 businesses with all of these assets, so I inferred that you have 2 business entities. I'm not a lawyer or an expert in asset protection so we'll just say that we're officially out of my depth on that topic :)

It sounds like you've done very well so far, why not just keep doing what you've been doing, while leveraging experts to improve your business operations? Keep building the monster! My concern for you would be exactly that - building it so big that it does turn into a monster you can't manage or grow, because the business systems aren't set up optimally. That's another area that someone with experience can help you.

Congratulations on getting this far on your own!

Ben Gordon · Answer

@Taylor L. Thank you for the response!

Establishing a goal has been difficult. Enough cash flow to cover my personal monthly expenses, create financial freedom, early retirement...I really just want to keep building this monster!

Can you elaborate on Asset Protection?

What I am doing is working. How do I know I am making the most efficient strategy? I am self taught in all of this so far. I am a believer in surrounding yourself with more successful individuals. By doing that I can learn more ideas, get more creative, etc. Rather than just limiting my strategy to whatever I have come up with.

Taylor L. · Answer

I think you should clarify what your goals are first. Why are you investing, as in the deep down reason you got into this business? Where do you want to be in 10 years, not just in real estate, but in life?

I would probably invest some time and money into asset protection. If all of those units are under just 2 business that could potentially be a problem.

I would also look at my properties and see what big capex items are coming up, and take care of them now or set some funds aside to take care of them soon. I would also make sure all of my debt is long term.

If what you're doing is working, why not keep doing it?