Kirkland, WA · Member since 2013 · 69 posts · 13 votes
Hi Everyone,
This site looks fantastic and I've spent a lot of time already trying to suck up all the advise and information available that seems endless!:), its just great to have stumbled across it!.
I live in Seattle and currently have 2 duplex in buffalo and one single family in Lehigh Acres FL. One is paid off fully and the others have small mortgages of 40 and 60K.
As mentioned in the title I am very interested in how, on what and where experienced property investors would invest $400,000 if they were to go on a spending spree today?!. I am more interested in good positive cash flow but if you had $400K would that change the strategy?
I also learned that lesson. Now I never buy anything more that ten miles from my home-base property and mostly none less than five miles from it. All that driving is for somebody other than me. <g>
With at least 1/2 of the funds, I would start by being a private lender for 1 to 3 years for 1st trust real estate deeds to get your money working for you right away. Study the deals that are presented to you and pattern your real estate transactions on the ones that make sense and money for you. Personally I first focused on SFH to rent and hold, then on some flips with minimal rehab and one commercial in the mix. I would recommend purchasing properties no farther than you can drive in a day. Ask me how I know this? I didn't at first, I regret it and I have been selling my outliers and making offers closer to home. All good learning experiences! Having someone you trust to discuss ideas is very important. This group should be helpful. ~Kathy
I would look to some diversification. I probably wouldn't attempt a fix and flip unless you just wanted yet another job or had someone very solid in your market that you could network with. Front end investor partners in our program earn 10% and a 50% split on the profits when the property is sold. These investors are usually seeing 20% to 30% on their funds in 6 to 12 months. We use the funds to purchase & repair distressed properties, turn them into shared housing and sell them off to passive investors who earn the tax write-offs and 10% to 14% returns. Happy Investing!