Rental Property Investor · Pomona, CA · Member since 2017 · 22 posts · 4 votes
Hi BP Community,
I've read some posts before covering investments from various angles but have not found something specific to my situation so I'm am looking for some thoughts and advice from the wise folks on BP. Specifically, I have $100-150k that I am able to invest and I’m seeking out options and suggestions for someone in my situation.
I am an informed investor who is open to possibilities that afford long-term passive income in Real Estate, preferably in multifamily. I am also open to Partnerships or funds so if there are groups or firms you would recommend with good reputations of success who work with informed investors that would be helpful as well.
There are some constraints, however.
Constraints:
My DTI is close to being maxed out
I am not accredited
Am not prepared to do my own syndication at the current time
I prefer not want to invest in REITs or the stock market
I currently work full time
Thank you all for your thoughtfulness. I look forward to your advice. - Gabriel
Real Estate Agent · Cleveland, OH · Member since 2016 · 252 posts · 43 votes
9y
Hi Gabriel, since you're in an expensive market I'd look somewhere like Cleveland where your money will go further. Here is a great article from Realtor.com that gives great insight on the best markets for real estate investors. https://www.realtor.com/news/real-estate-news/best...
Your $100k-$150k will allow to acquire 1-3 properties at a discount that cash flow well. From there you can re-invest that cash flow to grow your portfolio. If you get your DTI down over time you can begin leveraging again for maximum growth.
Real Estate Agent · Cleveland, OH · Member since 2016 · 252 posts · 43 votes
9y
Hi Gabriel, since you're in an expensive market I'd look somewhere like Cleveland where your money will go further. Here is a great article from Realtor.com that gives great insight on the best markets for real estate investors. https://www.realtor.com/news/real-estate-news/best...
Your $100k-$150k will allow to acquire 1-3 properties at a discount that cash flow well. From there you can re-invest that cash flow to grow your portfolio. If you get your DTI down over time you can begin leveraging again for maximum growth.
Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
9y
I don't see those as barriers for investing in partnerships, syndications or being a hard money lender. You need to build relationships with others and determine your own best path, but don't let your pre conditioned beliefs hold you back
Investor · Tromsø, Norway (Europe) · Member since 2015 · 431 posts · 194 votes
9y
@Account Closed Welcome to BP! This is a returning topic around here. In fact, it's so much debated Scott Trench recently posted a topic on the subject, which got a lot of detailed responses.
Here is the link: https://www.biggerpockets.com/forums/519/topics/485592-best-way-to-invest-a-large-lump-sum-of-money-100-300k
There are many strategies out there, but what is your end goal and timeline? Do you have any experience with real estate already?
Thanks for this. I did see the Scott Trench post around the time I was considering posting my question. There is a lot of good information mentioned in that stream and I'm grateful for the responses there. His post didn't specify limitations like I have in my case so I figured I'd see what others would suggest within those constraints.
To answer your question, I plan to make RE investing a part of my current portfolio for diversification purposes (other than my primary residence of course) and I'd ultimately like this to be a replacement an alternative to my regular work. Long term, I'm looking for cash-flowing properties (buy and hold or repositions in order to build a comfortable portfolio) but I'm pretty new to all the options at present. I am currently evaluating a property which I'd like to force appreciation on but even if that deal turns out favorably, obtaining it won't eat up the money I have on the sideline right now because it's outside of the Socal market. My long-term timeline is about 20+ years. The short-term timeline for the $100-$150k is 1-5 years with intentions to keep that money working. In about two years, I should be able to free up an additional $250k. I hope these details provide a better picture for you. Thanks for your response.
Thanks for that link. My area is certainly out the question especially because I'm more interested in cash flow than appreciation and the CAP rates here are relatively low. Cleveland was somewhere I was looking as would be other similar markets included in your link. At this early stage and being across country, I just haven't built the relationships in order to pull that off yet. I hope to get to Oakland for the conference to achieve some of that.