I have 50k to invest. Wanna buy multi families and apply brrrr strategy . The 50k will cover 30% down payment ( i am from canada) , closing cost, reno. Just wondering if that's enough. If yes, any place recommended ?
Four replies so far, three from agents, all touting the area where they sell property as the best...classic. 'To the man with a hammer every problem looks like a nail.'
Based of your question the place where I think your money will get the best ROI is investing in yourself. Get educated on the various types of RE and get exposure to all the different niches. Then figure out which of those niches fits with your long term goals, knowledge, skills, and abilities.
I have 50k to invest. Wanna buy multi families and apply brrrr strategy . The 50k will cover 30% down payment ( i am from canada) , closing cost, reno. Just wondering if that's enough. If yes, any place recommended ?
Thanks in advance
I would check out Columbus, Cincinnati, and Cleveland
Four replies so far, three from agents, all touting the area where they sell property as the best...classic. 'To the man with a hammer every problem looks like a nail.'
Based of your question the place where I think your money will get the best ROI is investing in yourself. Get educated on the various types of RE and get exposure to all the different niches. Then figure out which of those niches fits with your long term goals, knowledge, skills, and abilities.
@Stephen Brown thanks stephen! Heard lots stories about great CF in the midwest states.the future potential of the markets is what concerns me.Do you think its a good long term investment
@Brandon Goldsmith thanks brandon! What do you think the future potential of these states. In another words, what are the disadvantage of investing midwest states?
Now that your inbox is full of messages from unscrupulous hacks trying to get commission business and/ or “partner” with you... I would suggest that your $50k is not going to go as far as you may hope unless you look to areas like eastern Canada (not a fan, overheated currently and not driven by ANY economic fundamentals), or western prairies MB, SK, and AB.
If you’re buying anything detached needing repairs and are wise enough to keep a slush fund,... you’re likely going to want to keep saving a bit.
And you’re also going to need to build a credit relationship at a Canadian bank that has an American division. TD would be my first choice. But there are others
@Bill F. Thanks for the suggestion bill. I have done many research in the past 6 months and reached to a stage that i have to take action to learn more. Thats why im asking for everyone's ideas here
@Remington Lyman thanks remington! Heard a lot of positive reviews about investing in Ohio. What about the negative sides? Do you see a long term potential there ?
Virtually no bank will give a real estate loan to a LLC and if your $50,000 is 30% of a down payment you then that comes out to a $171,000 multi-unit property that has to include the loan fees, closing costs and most banks make you prove that you have reserve cash in a bank account when the property closes escrow.
You will need to get really lucky to find a multi-unit property, or even a duplex with only $50,000 and if you purchase a property that is beyond the distance where you can be hands-on and you have to hire a management company, the chances are you will go bankrupt before you see one penny of profit.
No beginner in real estate should do long-distance investing. It takes a long time to explain all the pitfalls that cut into your profits and I will not elaborate, but one of the best ways to make money is by being hands-on for as much as you can and then you save a lot of money you can use to invest in more deals and you can learn how to manage real estate much faster vs. relying on other people for their advice and skills that are sometime so bad you will lose your money and hate investing in real estate.
You can do alot with $50,000 and be fairly successful, but never listen to advice from so-called professionals. You have to learn everything about the business so well that you can give advice rather than ask for advice. You need to be able to do the math so well you can explain it to brokers because when you rely on brokers for advice they usually tell you everything they have for sale is a great deal.
This is my secret (not really a secret) for getting rich when investing in real estate. First, you need to learn to understand and do this simple math. Take your $50,000 and invest only in real estate where you can earn 50% to 100% on your money every years.
That means, if you have $50,000 today, you want to make a $25,000 to $50,000 profit (return on your money ROI) within 2 or 3 months of by the end of the year.
The next secret is; when many people have $50,000 in their pocket their anxiety is so high they don't know whether to poop or go blind. The money is burning a hole in their pocket and the jump on the first not-so-good deal that comes along and little to no profit is made. Had the high-anxiety investor let the money burn his pants a little longer a better deal would have come along.
If you cannot do a deal that will earn you 50% to 100% on your money every year then the secret is; DO NOT INVEST YOUR MONEY! Wait for the right deal.
My last not really a secret. The best way to earn 50% to 100% on your money every year is to 1) learn to do the math, 2) do the math, 3) look ad hundreds or thousands of properties and 4) look for properties where the math tells you:
a) your $50,000 investment will give you an instant profit of 50% to 100%, or $25,000 to $50,000 the day escrow closes because you math and other factors tell you the property is worth $25,000 to $50,000 more than you pay for the property. So, if you purchase a property for $250,000 with your $50,000 then to make 50% on your money when the property closes escrow the property has to be worth about $325,000 when it closes escrow.
Sure! It is sounds difficult to find a property for $250,000 that is worth $325,000, but it happens every day. If don't know what you are looking for and you don't look for it you will never find it. If you don't ask for a discount you will never get a discount. There are many ways to get huge discounts off properties. One is by asking and the other is by making an offer to purchase the property for the asking price and then negotiate when you do your inspections.
There are all sorts of ways you can get properties for discounts, but I don't have a lot of time to write. I purchased 28 properties at auction.com between 2008 and 2010 for 30 cents on the dollar and made several million dollars.
Back to the secret. If you blow your wad of cash prematurely then you will never have the cash you need when a great deal falls on your lap.
@Jack Orthman thanks for the golden nuggets jack. As a beginner, I know I am not going to get a grand slam deal. My goal is simple , $150+/unit /month cash flow and 8% cap rate. Im going to start small, build my confident and system. Then take on next level opportunity
I'd be willing to say this is a very broad statement in general. You can leverage 50k in many ways in real estate. You can leverage yourself and your skills even further in certain situations to land you deals.
@Bill F. Thanks for the suggestion bill. I have done many research in the past 6 months and reached to a stage that i have to take action to learn more. Thats why im asking for everyone's ideas here
Chester, I don't mean to be crass or negative, but simply in the spirit of realism. You haven't done enough research and are co-opting that line about 'taking action to learn' from some podcast or book you've heard to rationalize a thought you know is not one of your best.
If you had done enough research, you wouldn't be asking a bunch of strangers on the internet, a significant fraction of whom would make money if you bought their good/service, how to invest your hard earned money.
Of course it’s a broad statement, “I’ve got $50k (CDN) where should I invest” is a broad question. Just like “invest here, it’s awesome!” is a broad statement.
$50k CDN is currently about $40 usd (best exchange rate in over a decade currently). Take legal and accounting out of that, management of foreign LLC and filing fees of associated .ltd & likely holding Corp here in Canada... you've got about $32USD left over to play with. Appropriate staying power fund of ~$5-7k USD... sitting with a healthy $25k. Congrats, you've got a used Subaru or a trailer in Nebraska for cooking meth once the new LLC puts down the likely requested 35% that a brand new venture can expect as required downpayment.
New investors don’t command a paid expert position. Generally.
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews