26 year old w/ $250k cash - NEED INVESTMENT ADVICE

Member since 2020 · 13 posts · 5 votes

I'm 26 years old and my goal in life has always been to retire early and travel the world at a young age. I've worked extremely hard the past few years and I've been able to accumulate/save $250k in cash.

I would love some advice on where I should invest this money in order to generate passive income. Ideally, I'd like to start traveling the world with my wife in 4 years and we want to make sure we're generating passive income while traveling. Any and all advice is welcome and greatly appreciated!

0 Reply

47 views

Most Popular Reply

Brian Garrett

Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes

Piece of advice for what it’s worth. Never announce having $250k cash on a public forum and make sure you ignore all the colleagues requests and messages you get from people with “opportunities” and “deals” as these will be people looking to spend your money on what’s best for them, not invest it in what’s best for you.

4 Reply

See this reply in the discussion

17 Replies

Jump to latestLatest

Sort by

Will Fraser
Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
6y
Hi @Sergio A. -- well done! If you want the investing to truly be passive you'd be wise to look into syndication partnerships, private lending, or hard money lending. The most passive is likely to be partnering in big syndication deals.
When you say Passive, what are you envisioning?
1 Reply
Sergio A.
OP
Member since 2020 · 13 posts · 5 votes
6y
@Will Fraser Thanks for the response, Will! I'll need to look into syndication partnerships, private lending, and hard money lending.
I'm hoping that within 4 years I can be making 1k-2k a month passively due to the investments I make now.
0 Reply
Charles Carillo
Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes
6y
@Sergio A.

If true passive income is your goal, I would recommend investing passively in different real estate syndications. This is one of only ways within real estate to be 100% passive. If you want to be semi-passive there are other options; purchase a small apartment complex and hire 3rd party property management for example. Some investors want to be fully passive while others just want to oversee their property manager. You will need to know what types of properties you want to invest in as well; multifamily, mobile homes etc. Lastly, would be the type of returns you require. Traditionally, the more units that make up your portfolio, the more consistent your cash flow will be.
0 Reply
Hank Keller
Member since 2020 · 2 posts · 0 votes
6y
Hey Sergio. $250K is alot of dough. And I'm no expert but you may benefit from the Infinite Banking Concept. The idea is placing that money in a Whole Life Policy. Why? It yeilds 4%. And 4% of $250K is $10K. Ten K is not Exactly 1k/mo but its pretty close. With your youth intact it wouldn't hurt to research the Infinite Banking Concept. Google "Infinite Banking Concept Nelson nash book". I have the book on order right now because I'm in a similar situation. Cheers
0 Reply
Joshua Ferrari
Rental Property Investor · Mobile, AL · Member since 2018 · 121 posts · 136 votes
6y
Multifamily Syndications will give you the utmost freedom in your investment. I’m actually a multifamily syndicator located in Mobile, AL.

Brian Burke just came out with his book “The Hands-Off Investor” which goes in depth on how to vet syndicators and how to find the best opportunity for you. I highly recommend the book.

Continue to educate yourself in exactly what it is you’re looking for and what best suits your needs before approaching any syndicators.

If you need any additional information on how to vet syndicators, or what a good investment really is, there’s tons of forum posts on the topic of syndications.

All in all, I recommend lots of learning before jumping into anything. I’m happy to help if you need any additional information!
2 Reply
Sergio A.
OP
Member since 2020 · 13 posts · 5 votes
6y
@Charles Carillo What's a popular syndication that you recommend? Something like Fundrise?

@Hank Keller That's an interesting idea, I'm going to look more into it.

@Joshua Ferrari Thanks Joshua! I'll look into that book.
0 Reply
Blake Harris
Kansas City, MO · Member since 2020 · 35 posts · 10 votes
6y
I would suggest syndications. You will receive the same tax benefits that you would get owning the property by yourself through depreciation. Syndicators will set up an LLC, and if the business plan of the syndicator is to sell after a couple of years (depends on the business plan being implemented), they could accelerate the depreciation on that property as well. Meaning, you could potentially not have to pay taxes on those earning at all!
0 Reply
Bailey Kramer
Rental Property Investor · Denver, CO · Member since 2019 · 231 posts · 256 votes
6y
Hey @Sergio A. If you are looking for a fully passive, income-generating investment I would definitely look into investing with a syndicator, or partnering up with someone who is willing to do the groundwork. If you have any questions, feel free to reach out!
0 Reply
Brian Garrett
Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
6y
Piece of advice for what it’s worth. Never announce having $250k cash on a public forum and make sure you ignore all the colleagues requests and messages you get from people with “opportunities” and “deals” as these will be people looking to spend your money on what’s best for them, not invest it in what’s best for you.
4 Reply
Login George
Belleville, NJ · Member since 2016 · 46 posts · 19 votes
6y
@Juanita Lopez good point about how the timing of investments can make a huge difference. But I find it hard to know when to time it. Data would suggest that Even the smartest hedge and mutual fund managers can’t seem to do it that well either. Just think about the divergence of opinion here on when the right time to invest is given the COVID 19 crisis — some say now, others say wait.
0 Reply
Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
6y
@Sergio A.
Dont take investing advice from Someone you never met on an Internet forum.
7e investments53 Reviews
Website View Page
1 Reply
Charles Carillo
Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes
6y
@Sergio A.
I do not invest through online platforms. I prefer to begin a relationship with the syndicator 1-on-1. You need to speak to them and interview them to make sure they fit your goals.
2 Reply
Alina Trigub
Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
6y
@Sergio A.
Congrats on working hard and achieving such phenomenal results at early age!
I would refrain from posting the amount of money you earn on a social media platform!
In terms of passive investing, while syndications, lending, etc are all passive, the main goal should be to build a well diversified portfolio.
You should also look into FIRE movement. I think you'll find a lot of things that will resonate with you in their approach.
Here're some articles to help you further:

https://www.biggerpockets.com/member-blogs/10850/77215-the-power-of-passive-real-estate-investing

https://www.biggerpockets.com/member-blogs/10850/86626-the-pros-and-cons-of-investing-via-real-estate-syndication

https://www.biggerpockets.com/member-blogs/10850/85836-should-i-buy-a-turn-key-property-or-invest-in-a-syndication

Best of luck!

0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.