What strategy should I do with $100k cash?

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What strategy should I do with $100k cash?

William Moya
Investor · Land O lakes, FL · Member since 2016 · 72 posts · 61 votes

Hi all, I would like some ideas on how to invest $100 in todays market. Any suggestions, strategies? Creative or basic. Thanks in advance.

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Khaled Morad
Lender · Tampa, FL · Member since 2018 · 422 posts · 210 votes
4y

There’s a lot of different strategies, but a few quick ideas in no order of effectiveness:

- could grab two cash flowing properties in a cheaper market, like Buffalo, NY. 
- joint venture or private loan it out while you gather more money or weigh your options. 
- buy a solid single family home in an appreciating area like Tampa. When there is rising inflation, debtors gain (in other words taking credit now is more advantageous as the value of money lowers).

- blow it on a big flashy SUV and be the envy of the town!

-  put it all on black!

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  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    4y

    Not an answerable question without knowing the market and the specific property you are looking to invest in. The strategy you would use depends completely on the market you are investing in (specific property) and what the financial criteria (cash returns) that is stated in the timeline of your REI Plan.

    1Reply
  • William Moya
    OP
    Investor · Land O lakes, FL · Member since 2016 · 72 posts · 61 votes
    4y

    @Joe Villeneuve thanks for your feedback. I don't have a specific property, I'm in the Tampa bay market. But inventory is low and most wholesale deals dont fit the traditional formulas. Most of the deals I find are very skinny on the margins.

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  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    4y
    Originally posted by @William Moya:

    @Joe Villeneuve thanks for your feedback. I don't have a specific property, I'm in the Tampa bay market. But inventory is low and most wholesale deals dont fit the traditional formulas. Most of the deals I find are very skinny on the margins.

    I assumed that since you didn't mention any specific property in your original post. My answer remains the same though. The strategy used should be based on what strategy works best within a specific market and property within that market and how that combination delivers the criteria found at that specific timeline in your REI Plan. All three, Market, strategy and plan must work simultaneously with each one depending on the other two for the success of that specific deal.

    The Market tells you where to invest, the strategy tells you how, and the REI Plan tells you when.

    2Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    4y
    maybe for the time being you just lend those funds to someone else in a safe manner make cash flow that way while you wait to see how the market shakes out. 
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  • Khaled Morad
    Lender · Tampa, FL · Member since 2018 · 422 posts · 210 votes
    4y

    There’s a lot of different strategies, but a few quick ideas in no order of effectiveness:

    - could grab two cash flowing properties in a cheaper market, like Buffalo, NY. 
    - joint venture or private loan it out while you gather more money or weigh your options. 
    - buy a solid single family home in an appreciating area like Tampa. When there is rising inflation, debtors gain (in other words taking credit now is more advantageous as the value of money lowers).

    - blow it on a big flashy SUV and be the envy of the town!

    -  put it all on black!

    7Reply
  • Khaled Morad
    Lender · Tampa, FL · Member since 2018 · 422 posts · 210 votes
    4y

    You can also check out a local meet up to connect with more investors for more ideas and possibly joint ventures. Search “Tampa free RE meetup.”

    1Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    4y
    Originally posted by @Joe Villeneuve:
    Originally posted by @William Moya:

    @Joe Villeneuve thanks for your feedback. I don't have a specific property, I'm in the Tampa bay market. But inventory is low and most wholesale deals dont fit the traditional formulas. Most of the deals I find are very skinny on the margins.

    I assumed that since you didn't mention any specific property in your original post. My answer remains the same though. The strategy used should be based on what strategy works best within a specific market and property within that market and how that combination delivers the criteria found at that specific timeline in your REI Plan. All three, Market, strategy and plan must work simultaneously with each one depending on the other two for the success of that specific deal.

    The Market tells you where to invest, the strategy tells you how, and the REI Plan tells you when.

    Yeah it totally depends.  Many are best off just duplicating or scaling up what got them the capital in the first place.  Up your broker marketing if commissions generated it for example. 

    Like Joe mentions, it's how it fits into your overall strategy.  I just sunk $100k into a duplex purchase.  The duplex isn't the end goal, but a step closer to my 3rd and final red hotel in my overall monopoly game.  It's a green house on Atlantic if you will. 

    So what's the plan, man? Dibble and dabble a little REI to subsidize retirement? Or go all in full time? Start there. Good to see a broker looking to own and be a principal.

    2Reply
  • German Vellon
    Investor · Tampa · Member since 2019 · 29 posts · 7 votes
    4y

    William Moya...I share your pain somewhat I'm.just trying to keep an open mind about it and weigh my options also

    1Reply
  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    4y
    Originally posted by @Steve Vaughan:
    Originally posted by @Joe Villeneuve:
    Originally posted by @William Moya:

    @Joe Villeneuve thanks for your feedback. I don't have a specific property, I'm in the Tampa bay market. But inventory is low and most wholesale deals dont fit the traditional formulas. Most of the deals I find are very skinny on the margins.

    I assumed that since you didn't mention any specific property in your original post. My answer remains the same though. The strategy used should be based on what strategy works best within a specific market and property within that market and how that combination delivers the criteria found at that specific timeline in your REI Plan. All three, Market, strategy and plan must work simultaneously with each one depending on the other two for the success of that specific deal.

    The Market tells you where to invest, the strategy tells you how, and the REI Plan tells you when.

    Yeah it totally depends.  Many are best off just duplicating or scaling up what got them the capital in the first place.  Up your broker marketing if commissions generated it for example. 

    Like Joe mentions, it's how it fits into your overall strategy.  I just sunk $100k into a duplex purchase.  The duplex isn't the end goal, but a step closer to my 3rd and final red hotel in my overall monopoly game.  It's a green house on Atlantic if you will. 

    So what's the plan, man? Dibble and dabble a little REI to subsidize retirement? Or go all in full time? Start there. Good to see a broker looking to own and be a principal.

     Keep this in mind when developing that plan.  The plan is purely financial.  You start with your specific (not, "I want to be financially inde...", blah, blah blah) number$ (financial goals) needed to become "financially independent".  Then, work backwards (reverse engineer) from those numbers establishing specific financial prerequisites for each step to get to your financial goals, much like in college with your degree being your goal, and the classes you must take, in specific order, the prerequisite steps in order of appearance. 

    You should never, EVER, utter those fateful last words of the lost REI, "I just bought (fill in the blank here),...now what do I do?".  Every decision you make should will be based on that specific "next thing" you will be doing.

    2Reply
  • Hersh ShahBusiness Member
    Realtor · Atlanta, GA · Member since 2016 · 117 posts · 78 votes
    4y

    @William Moya

    I believe you are asking the wrong question here. What strategy do you know the best and have the time, energy and skill to execute is a better question.

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  • William Moya
    OP
    Investor · Land O lakes, FL · Member since 2016 · 72 posts · 61 votes
    4y

    @Khaled Morad thanks for your feedback

    0Reply
  • William Moya
    OP
    Investor · Land O lakes, FL · Member since 2016 · 72 posts · 61 votes
    4y

    @Steve Vaughan I appreciate your feedback

    0Reply
  • William Moya
    OP
    Investor · Land O lakes, FL · Member since 2016 · 72 posts · 61 votes
    4y

    @German Vellon thanks for your feedback

    0Reply
  • William Moya
    OP
    Investor · Land O lakes, FL · Member since 2016 · 72 posts · 61 votes
    4y

    @Jay Hinrichs I like that opinion

    Thanks

    0Reply
  • William Moya
    OP
    Investor · Land O lakes, FL · Member since 2016 · 72 posts · 61 votes
    4y

    @Joe Villeneuve thanks for your feedback Joe. I appreciate it.

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    4y
    Originally posted by @William Moya:

    @Jay Hinrichs I like that opinion

    Thanks

    Well I just noticed your NMLS # so assuming since your registered there you also have a state lenders license and fully understand debt obligations and how they work.. so this would of course be a slam dunker for you.

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    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    4y

    Find out how much you can borrow and what you want to do (short term or long term rental).  I'd do 20% down on a house or duplex, borrow the rest and repeat with the remaining money.  Don't try to go too quickly, buy the first place and see how it goes.  Winter is usually a good time to buy as prices are lower.

    1Reply
  • William Arrington
    Gainesville, VA · Member since 2021 · 82 posts · 72 votes
    4y

    @William Moya

    I chose the Airbnb path with 25% down. The cash flow is pretty incredible. You could also pull off a decent BRRR with that amount. Bosworth for the house. Use the cash to reno. Pull your money back out

    1Reply
  • Juan Zavala
    Member since 2020 · 7 posts · 2 votes
    4y

    @William Arrington

    Where did you purchase the Airbnb?

    0Reply
  • Eddie Fernandez
    Rental Property Investor · Platte City Missouri, United States · Member since 2020 · 37 posts · 45 votes
    4y

    @William Moya As a few have already mentioned depending on how involved of an investor you want to be is the route you should take. If you like dealing with the stress of contractors, permits, and flipping then go thar route OR if your more of a passive investor like me. I prefer to be the bank and buy RE notes where I have all the leverage and none of the headaches dealing with tenants, toilets, or trash. I also loan money to flippers and I make money on money while they do all the work. I also have the leverage of being in 1st position. So again how involved do you want to be…that’s the question.

    3Reply
  • Rob Massopust
    Real Estate Broker · Santa Ana CA [South Coast Metro] · Member since 2016 · 459 posts · 202 votes
    4y

    Hmm you are an agent and loan agent, that makes it more interesting. 

    Are you looking for ideas for buying a property or building your business [if business, crank out a lead generation machine].

    You have to go back to basics and what are your objectives, goals, plans and capabilities? Figure these out and you will be better guided and options will be more clear.

    Do you own a house now? Do you own any other rentals?

    Do want a BRRRR- do you have time and ability to do and manage a fixer or a rental. My assumption and do not take this personally if you are just looking for ideas on what to do with $100k vs actual guidance my guess is you do not have much time to manage a project or a short term rental so that limits your choices. The more you can narrow those options the easier it will be to figure out.

    I have a client that just bought a duplex in Fort Lauderdale and even though you say prices are high in Tampa - News flash prices are high everywhere [They are moving from Orange County CA]. That is not an excuse that anyone should be spouting. Deals are not "found" they are made. - they are renting out as a nurse rental and killing it!

    I have another client that said I have $5000 to put into a property - what can I get. Easy a condo, fix and rent and hold for a few years and after you occupy for a year then you can rent out as a furnished rental and cash flow - hmm ok. 

    You have alot of options. If you add more details  I will see what else works.

    0Reply
  • Curt Smith
    Rental Property Investor · Clarkston, GA · Member since 2012 · 2k+ posts · 1k+ votes
    4y

    @William Moya a must do for every rei is join their local Reia.

    Yours is https://tampareia.com/

    Pete Fortunato and a dozen big names are in this most active reia in the country.

    You'll find partners and deals at Tampa Reia.

    0Reply
  • Dan Maciejewski
    Realtor · PInellas County Largo, FL · Member since 2016 · 902 posts · 810 votes
    4y

    In our market, it's still al great time to get a short term rental!  They are doing almost as well in Hillsborough as Pinellas.  The market's tight but the properties are there, albeit 1 or 2 at a time!

    0Reply
  • William Moya
    OP
    Investor · Land O lakes, FL · Member since 2016 · 72 posts · 61 votes
    4y

    @Dan Maciejewski thanks I think Im gonna jump into an AirBNB an give it a try

    0Reply
  • Khaled Morad
    Lender · Tampa, FL · Member since 2018 · 422 posts · 210 votes
    4y

    I vote STR too if you can do it now William! Just make sure to factor in furnishing and great property management company (if not self-managing. I think STR managing would be more of a challenge for me. The constant booking of tenants, cleaners, and upkeep of amenities and great photography would be my struggle!

    There will be several agents and other investors with experience in STR at the upcoming Tampa Bay Free RE Meetup this Wednesday (https://www.biggerpockets.com/...). I hope to see you  @William Moya @Dan Maciejewski there!

    0Reply
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