Real Estate Agent · Melbourne, FL · Member since 2018 · 54 posts · 33 votes
Experienced Investors!!!!
I will have about $50,000 saved up by January and I am anxious and ambitious to get started. I am open to start my Real Estate investment career anywhere in the country utilizing whatever means of financing I need.
I am blank canvas with $50,000 saved up going into 2022. I am 33 and live in Central Florida. What advice can an experienced investor give me to make the best use of my $50,000. My goals are ultimately to create and manage a portfolio with multiple goals properties, the skies the limit. I am open to single family and/or multi family properties.
Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
5y
If you do not own a home, I would recommend you use the funds as a down payment on a light fixer which can serve as your principal residence for at least 2-3 years. As you slowly fix the property, you will learn hundreds of lessons about residential real estate - finance, troubleshooting systems, the cost of labor and materials, and if you are fortunate enough to live in an appreciating market you will forgo paying capital gains tax on your exit.
Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
5y
If you do not own a home, I would recommend you use the funds as a down payment on a light fixer which can serve as your principal residence for at least 2-3 years. As you slowly fix the property, you will learn hundreds of lessons about residential real estate - finance, troubleshooting systems, the cost of labor and materials, and if you are fortunate enough to live in an appreciating market you will forgo paying capital gains tax on your exit.
Lender · Denver, CO · Member since 2017 · 348 posts · 143 votes
5y
@Joe Matthews I would say start with house hacking if that is an option. You can also looking into Sub2 deals. Both of those would allow you to start now and get ahead of the prices likely going up.
If you are wanting to wait until you have the full 50k than I would say to start networking with wholesalers and agents as well start letting people know that you are looking for investment properties. Even though you may not have all the cash right now this will allow you to start building relationships and if you happen to find a great deal it is a lot easier to find capital, a capital partner or a JV partner when you have a solid deal already than it is to find money when you are just "browsing".
Investor/Developer · Salt Lake City, UT · Member since 2015 · 207 posts · 106 votes
5y
@Joe Matthews Pretend you don't have $50k. Decide what deals excite you the most. Start doing those deals without the 50k (i.e, borrowing money or getting investor partners). Treat your own 50k like it belongs to the most expensive hard money lender on the block. Worst case, you use it.
But if you aren't going to succeed in doing deals without 50k, then the savings you have won't get you very far. You'll buy a rental or two and then you're back in the rat race of saving money so you can buy a rental.
Get used to using your brain and hustle to generate assets, not your cash (yet).
"the #1 killer of investment returns is a fat wallet." -Warren Buffett