Real Estate Agent · Oklahoma City, OK · Member since 2020 · 471 posts · 462 votes
I am in the midwest, I refinanced my house and pulled some cash out, I am curious how some of you would go about investing it in real estate (or other means).
Rental Property Investor · Petaluma, CA · Member since 2018 · 203 posts · 164 votes
5y
It really depends on your goals and experience level. You could split the $60k up into multiple down payments, or you could buy something all cash and do some rehab and cash out refi again down the road. You could also buy something semi turn key all cash and just sit on the cash flow.
Numerous ways to go about it and each one will have different outcomes, but you should start with your end goal in mind and work backwards
Any particular syndications you look for? What terms do you find favorable?
I look for multi-family, industrial or data center deals. For most, you need to be an accredited investor. I also look at the syndicators track record, and references. As for deal specifics, I like a 8% return with at least a 2x equity multiple and a favorable waterfall (at least 70/30 hopefully better).
Data centers sound interesting. I've focused on multifamily and self storage for my active & passive syndication investments but data centers sound like an interesting one. Any particular sponsors you'd recommend looking into?
My answer to the OP's question is exactly what the plan is for my current cash: My next multifamily syndication deal.
Rental Property Investor · Henrico, VA · Member since 2019 · 265 posts · 155 votes
5y
@Forrest Faulconer My first thought is 2 downpayments for 2 duplexes to take advantage of the incredible rates. With the caveat that I would take my time to carefully look for (stalk) value deals over the winter (probably not going to come via mls is my guess). If they arise, then strike. If not, hold the cash as a reserve (especially if you could use the extra cushion) until later Next year in the spring or summer to see how the recession goes (for you and everyone around you) and to see how all these eviction moratoriums go.
Flipper/Rehabber · Brooklyn, NY · Member since 2020 · 9 posts · 1 vote
5y
@Forrest Faulconer
Although new to investing I am actually in a similar reality.
I would invest in a house hack or a fix and flip for faster cash. If the hack came first I would borrow equity from it after a year to get up to 4 more deals going (low end, about $100K each) which is now $400K in homes to be flipped.
If fix and flip came first then just to make quick cash I would go in a smaller less aggressive market (smaller state) like Delaware, or smaller cities. If each home were $50K I would invest 20% on on at least 2 to be flipped and get my cash reserves.
Rental Property Investor · Houston, TX · Member since 2017 · 29 posts · 25 votes
5y
@Jake Tucker
in Houston but everyone knows the average OOP is 25-35k. I just got lucky because when the deal was initially proposed the deal was projected 30k OOP.
Because I had done research on the area prior I knew the numbers were too conservative.
I know I can find deals for 10-15k OOP but I know it’s rare so I might even use my own W2 to start a marketing campaign and find some deals on my own. I know the spread in Houston between wholeseller and investor is a lot so if I source a deal on my own I can easily be <15k OOP on each deal.
Im from Mobile AL so if all else fails I can go there too. I’ll go anywhere to find a deal.
Investor · Minneapolis, MN · Member since 2016 · 254 posts · 228 votes
5y
@Forrest Faulconer I think depends on how much you want to invest your time and energy in your real estates, Brandon's "scale of comfortability". If you're b***s to the wall you might use a 203k loan to buy a distressed 4 plex in a borderline area while using the other half to BRRR another 4 plex with hard money. In a year you'd have a stabilized 8 unit portfolio likely cash flowing well and furthermore have your money back after a refinance, in order to rinse and repeat. The down side is you suffer quite a lot, though learn immensely, in the process. You could also just hand the money off to a syndicator, but probably learn little to nothing about the nitty gritty of investing.
Any particular syndications you look for? What terms do you find favorable?
I look for multi-family, industrial or data center deals. For most, you need to be an accredited investor. I also look at the syndicators track record, and references. As for deal specifics, I like a 8% return with at least a 2x equity multiple and a favorable waterfall (at least 70/30 hopefully better).
Data centers sound interesting. I've focused on multifamily and self storage for my active & passive syndication investments but data centers sound like an interesting one. Any particular sponsors you'd recommend looking into?
My answer to the OP's question is exactly what the plan is for my current cash: My next multifamily syndication deal.
Hi Taylor, I'm actually still looking into Data Centers and syndications of them. It's taking a lot more legwork to find, as a lot of these are deep pocketed institutional guys. But I know I'll get there!
Any particular syndications you look for? What terms do you find favorable?
I look for multi-family, industrial or data center deals. For most, you need to be an accredited investor. I also look at the syndicators track record, and references. As for deal specifics, I like a 8% return with at least a 2x equity multiple and a favorable waterfall (at least 70/30 hopefully better).
Data centers sound interesting. I've focused on multifamily and self storage for my active & passive syndication investments but data centers sound like an interesting one. Any particular sponsors you'd recommend looking into?
My answer to the OP's question is exactly what the plan is for my current cash: My next multifamily syndication deal.
Hi Taylor, I'm actually still looking into Data Centers and syndications of them. It's taking a lot more legwork to find, as a lot of these are deep pocketed institutional guys. But I know I'll get there!
I can believe it. Data center buildings are enormous, have massive climate control systems, and require a lot of power. Facebook invested nearly $1 billion into a data center in my city. I can only imagine they typically cost in that realm to build.