I have 50k to start, where should I invest

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I have 50k to start, where should I invest

Chester Wang
Member since 2021 · 14 posts · 8 votes

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

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Bill F.
Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
5y

@Chester Wang

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.

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  • Dorian Weber
    Real Estate Agent · Wellington, FL · Member since 2018 · 36 posts · 17 votes
    5y
    Originally posted by @Bill F.:
    Originally posted by @Chester Wang:

    @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. 

    Best of Luck 

    At some point you want to ask for advice from people and yes that might included people who stand to profit in an area. You know what you know, and you dont know what you dont know.

    The guy is asking for advice on areas, everyone here recommends an area especially realtors in those areas. If OP gets a list of 10 cities they can do some admin, run the numbers and see where might be a good fit. 

    0Reply
  • Fred Cannon
    Rental Property Investor · St Augustine, FL · Member since 2019 · 265 posts · 279 votes
    5y

    @Chester Wang save your money for now and keep adding to it. I would not do anything for at least 6 months, you certainly don't want to buy something and then get a COVID renter. I have two properties that have not paid anything in 5 months. Why should they, they have applied for rental assistance but that doesn't help me. Can't not charge late fees but still I have to pay my cost of ownership. Price of Real Estate is quite high now as well. The only way I would buy in this environment is full cash purchase

    0Reply
  • Jean Pierre Alarie
    Member since 2021 · 9 posts · 2 votes
    5y

    Hello Have you considered investing in the states? I sent you a Pm

    0Reply
  • Chester Wang
    OP
    Member since 2021 · 14 posts · 8 votes
    5y

    @Bill F. Thanks bill! Yes I am not prepare to buy a house right away. What i mean by taking action is to ask someone who had successful investing career about their opinion.

    0Reply
  • Chester Wang
    OP
    Member since 2021 · 14 posts · 8 votes
    5y

    @Fred Cannon

    Sorry to hear that. My canadian property is going through the same pain. Is it hard to evict tenants there despite FL is landlord friendly state?

    0Reply
  • Moises Guzman
    Member since 2020 · 12 posts · 4 votes
    5y

    @Jack Orthman thanks jack very helpful information you laid down here ,god bless

    0Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Chester Wang:

    @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 ?

     lack of contractors and property managers.

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  • Stephen Brown
    Real Estate Broker · Huntsville, AL · Member since 2019 · 1k+ posts · 872 votes
    5y
    Originally posted by @Chester Wang:

    @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

     Yes I do think it's a good long term strategy. Your end buyer is another investor or the tenant that rents from you for 10 years!

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    5y
    Originally posted by @Chester Wang:

    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

    $50k may have been doable in Cleveland and similar areas in 2018ish but not now in 2021. Pricing and demand is far too high for that budget to work on a BRRRR. You could use those funds to pickup 2-3 duplexes on a traditional mortgage though.

    For more info on the climate of the Cleveland market I suggest reading The Ultimate Guide to Grading Cleveland Neighborhoods.

    0Reply
  • Chester Wang
    OP
    Member since 2021 · 14 posts · 8 votes
    5y

    @James Wise

    Hi James , read your post , thanks for updating the post regularly.

    So my goal is to get a duplex in C-B area. Cash flow $100-150/unit/month. Can i do a Brrrr with 50k in these areas ?

    0Reply
  • Ivonne Pinedo
    Realtor · Miramar, FL · Member since 2020 · 56 posts · 18 votes
    5y

    @Chester Wang

    I am going to suggest something different while you decide on the location to invest in the US.

    Look into funding merchant cash advances.

    I am a merchant cash advance account representative. We have Canadian clients funding contracts up to $50k and getting up to 10% monthly returns.

    They all have TD Bank and get their checks on a monthly basis. They are still working out the details to fund more contracts (up to $100k) to make sure they are able to exit the contract upon expiration and transfer the earnings with the least issues possible.

    I found this to be a profitable investment vehicle for my real estate reserves and any unused funds. I am in Florida and current SFH prices don't meet my $800 net return per door criteria. However, funding these contracts have been the best use of this crazy time and money.

    Hope that helps.

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    5y
    Originally posted by @Chester Wang:

    @James Wise

    Hi James , read your post , thanks for updating the post regularly.

    So my goal is to get a duplex in C-B area. Cash flow $100-150/unit/month. Can i do a Brrrr with 50k in these areas ?

    No.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Ivonne Pinedo:

    @Chester Wang

    I am going to suggest something different while you decide on the location to invest in the US.

    Look into funding merchant cash advances.

    I am a merchant cash advance account representative. We have Canadian clients funding contracts up to $50k and getting up to 10% monthly returns.

    They all have TD Bank and get their checks on a monthly basis. They are still working out the details to fund more contracts (up to $100k) to make sure they are able to exit the contract upon expiration and transfer the earnings with the least issues possible.

    I found this to be a profitable investment vehicle for my real estate reserves and any unused funds. I am in Florida and current SFH prices don't meet my $800 net return per door criteria. However, funding these contracts have been the best use of this crazy time and money.

    Hope that helps.

    OK  10% a month 120%  a  year   no risk in those.

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    2Reply
  • Bill F.
    Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
    5y

    @Jay Hinrichs

    I thought the same thing, but it may not be as far fetched once I did about five minutes of googling. 

    I had never heard of Merchant Cash Advance, but after reading up on it, business sell a portion of their future credit/debit sales for cash now. Since it isn't a loan but a sale of future revenue, usury laws don't apply. 

    Seems like the Pay Day lending of the business world, but I could be wrong. 

    0Reply
  • Ivonne Pinedo
    Realtor · Miramar, FL · Member since 2020 · 56 posts · 18 votes
    5y
    Originally posted by @Bill F.:

    @Jay Hinrichs

    I thought the same thing, but it may not be as far fetched once I did about five minutes of googling. 

    I had never heard of Merchant Cash Advance, but after reading up on it, business sell a portion of their future credit/debit sales for cash now. Since it isn't a loan but a sale of future revenue, usury laws don't apply. 

    Seems like the Pay Day lending of the business world, but I could be wrong. 

     Like Amscott for businesses.

    A google search will give plenty of information of the subject. It's a way to increase 

    0Reply
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