You've just hit your savings goal of $50k, whats next?
Friend hits the mark with $50k in savings, but he isn't sure what to do to make it grow. If you were him, what would you do? He lives in a HOT real estate market and hasn't ever invested in RE much less out of state. He has a full time job and qualifies for a VA Loan. Do you look to join a syndication, partner on a flip while working a W-2 full-time, meet a few wholesalers and hope to find a good BRRR or do you put it all in apple stock and cross your finger?
Thanks in advance for the info.
Trevor
What's the investing goals? Active or passive?
Bjorik is right. The more time he can dedicate to growing his wealth bucket, the faster it will grow.
If he doesn't have much time or knowledge yet, a syndication for non-accredited investors is good way to learn.
He could also put that capital down on a 4-plex and househack.
Or find a great partner who has the experience and can put his capital to use in harmony with your friend's investing goals
The other options you listed seem too risky if he doesn't have much experience.
Good luck
@Bjorik Mutize the overall objective is leaving the rat race through real estate. The passive income of buy and hold would be great. But I'm not sure $50k will make that happen soon enough.
Good amount for a lot of syndicators. If his goals are passive, I would go with that. He gets the benefits of scale and does not need to lear on the job as much. The VA loan aspect is nice, but still hard in a hot market. Syndication allows him to go out-of-state and where the returns are strong enough for his risk tolerance and appetite.
@Trevor Bingham awesome. And i personally think you can do a lot with $50k. Some people out there start with literally 100% less. This question you asked is probably one of the most difficult question asked on the forums due to so many potential paths that can be taken.
I'd take a bit of time and study property types, BRRR strategies, syndication and etc. Then get out there and network with those who have successfully executed. From their, create a detailed, quantitative and qualitative backwards plan on what it means for you to leave the rat race
You can do a lot with $50k, yes, but if you're looking for financial freedom within 3-5 years, passive investing in syndications won't do it (and I say that as a syndicator myself!). You're going to need to make up for your relative lack of capital with an increased amount of hustle. Nothing wrong with that! Learn about the BRRRR strategy, lots of folks are doing well with that. Great way to amplify your capital.