$100,000 to spend, I need advise

Realtor · FL · Member since 2013 · 372 posts · 83 votes

Hello BP collegues/friends,

I work and live in Miami, FL; and I invest in out of state rental properties. I recently was recently awarded $100,000 and I wanted to get advise on the best way to use the funds and make a great return? I am not closed on the strategy and or method. In my market place, it is not ideal to effectively use these funds here thus I am seeking other opportunities. I am not to interested in holding assets with these funds, I prefer to double the funds then buy more holding assets. At your earliest please give me your thoughts everyone. I look forward to hearing from you guys soon. Thank you in all in advance.

Regards,

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Joe VilleneuvePro Member

Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes

First thing...Dob't advertise to the world you how much you have.

Second, I have property in South Florida...South of Miami. I just happen to be selling it for $99k. Are you interested?

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Ian IppolitoBusiness Member
Investor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
Since you are looking for a 6 to 12 month hold, that's pretty short. Flipping can give high returns, but it also comes with risk. The risk is that the market will eventually turn at some point. No one knows exactly when, but if it happens during your investment, suddenly your expected price appreciation won't be realized, and suddenly instead of doubling your money, you are left with less than you started (or possibly bust if things go really bad).

In that situation, you don't want to be in equity. You want to be the person holding the loan for the flipper. In that case, if the deal goes bust, the loan holder forecloses on the property, and uses those proceeds to get back some or all of their money.

So personally, I would recommend doing that (i.e. investing in "hard money loans"). The possibility of going completely bust is extremely small. The ideal ways to invest in a fund, and then you are instantly diversified into hundreds of notes. If you purchase notes on your own, $100,000 will not go so far, and you will be taking on a lot of individual property risk. But most of the funds are only available to accredited investors, and I am not sure if that is you were not. If you are nonaccredited, then there's only one fund that I know of (IronBridge) and it is investing in a very conservative part of the capital stack, that's probably too conservative for you (only 6% return). So you may have to actually go the route of crowdfunding them.
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Eric Sullivan
Developer · Salem, MA · Member since 2018 · 83 posts · 68 votes
7y
It sounds like a flip would be your quickest way to build some more capital with it if your long term plan is to then to get it into a bigger hold such as a larger multi unit property. That is if you want to stick with real estate.
Some other people posted about providing hard money loans which also I would agree with as well.
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Duriel Taylor
OP
Realtor · FL · Member since 2013 · 372 posts · 83 votes
7y
@Todd Dexheimer I will PM you now.
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Dovid Staples
Rental Property Investor · Chandler, AZ · Member since 2011 · 145 posts · 79 votes
7y
invest it in my fool-proof real estate system for making easy money without using you're own money
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Duriel Taylor
OP
Realtor · FL · Member since 2013 · 372 posts · 83 votes
7y
@Ian Walsh thank you for the feedback. I have invested before and my portfolio is currently financially beneficial to me. When I invest in assets, I typical know the market and what return I want on XYZ years. These funds I have now, I have never had this much before including the timeline thus I do not want to go on my own knowledge, I am seeking knowledge from more experience investors.
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Duriel Taylor
OP
Realtor · FL · Member since 2013 · 372 posts · 83 votes
7y
@Ian Ippolito thank you for your feedback. I agreed with you, historically the market corrects itself every 10-12 yrs and we are at the 10th yr mark. I will look into the funding hard money nitch. I am not accredited, I am a few steps from some of the credentials. A 6% return will surely be too low.
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Duriel Taylor
OP
Realtor · FL · Member since 2013 · 372 posts · 83 votes
7y
@Eric Sullivan thank you for your feedback. I love REI too much to consider anything else. The lending to flippers maybe the quickest way, I agree; however the risk is there then I would have to potentially finish the project while being at the mercy of the market (at that time).
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Tchaka Owen
Real Estate Agent · Merritt Island, FL · Member since 2017 · 974 posts · 1k+ votes
7y
@Duriel Taylor - Thomas Franklin gave sound advice about JVs. And you do need to be realistic about your returns....you might double your money in a year, however it's much more likely you'll get 40-50% return. For most people, that's amazing.

BTW, I just moved out of Hollywood after 12+ years of living in the Lakes for precisely the reason you're not investing in the area. I'm now up the coast and seeing much better opportunities. Perhaps there's a JV possibility in the near future.
PS - the advice about spreading your funds to reduce risk is a good one!
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Duriel Taylor
OP
Realtor · FL · Member since 2013 · 372 posts · 83 votes
7y
@Dovid Staples thank you for your feedback. I am not sure what your fool proof system is but everything has risk. Even little Caesars was caught on social media selling digiorno pizzas to customers LOL.
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Dovid Staples
Rental Property Investor · Chandler, AZ · Member since 2011 · 145 posts · 79 votes
7y
*wooosh*
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Duriel Taylor
OP
Realtor · FL · Member since 2013 · 372 posts · 83 votes
7y
@Joe Villeneuve I find myself up early every morning to look at opportunities and or reply to emails. Those hours most people are sleep thus no one is calling/texting. I would be more than honored to coordinate days/times to have a master mind hour with you. I look forward to hearing from you soon.
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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
7y
**Moderator Note** Self promotion and deal making is not allowed in the regular forums. If you have a product, property or service, THIS IS NOT THE PLACE TO POST IT.
The Marketplace Forum is the ONLY place deal making and self promotion is allowed. Those posts WILL be removed.
[email protected]Podcast Guest on Show #261
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Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
7y
I spent $97k recently on a little rent house and remodel. It had to be cash as it needed too many repairs. This reduced competition and got the seller to contact to me. The main ingredients of any good purchase.
I 'made' 55% in 6 weeks. In equity. But guess what would happen if I wanted my gain back in cash quickly? It would quickly turn into like $18k.
By the time taxes and transaction costs ate most of my gain, I am left with a poor return for the risk and effort. Earning the return you want net with RE will send you into the ultra risk stratosphere.
RE is not liquid enough for efficient turns. Short holds have no tax benefits and you will be subject to SE taxes. With no efficiency or tax benefit, I'd say you need a different asset class altogether. At least paper asset gains won't require SE taxes. Or hammers. Or contractors. Or partners. Or 15 years of sowing relationships to find the deal.
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Duriel Taylor
OP
Realtor · FL · Member since 2013 · 372 posts · 83 votes
7y
@Tchaka Owen thank you for your feedback. I am realistic with my returns, I just have a number I will not go below to. I agree with you, most people that will be amazing however, if I reach for 40-50% return it may fall to 20-30%. I prefer to reach higher and maybe gain more and or a little less vs settling for very small, if that makes sense. This market is not favorable to non-billionaires, Im not assuming you are not, I am only speaking for myself LOL. I would be more than honored to discuss potential business ventures with you. I look forward to hearing from you soon.
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Duriel Taylor
OP
Realtor · FL · Member since 2013 · 372 posts · 83 votes
7y
@Mindy Jensen thank you for your post. I will like to state I am not self promoting nor deal making. I am seeking advise and suggesting with a business matter. If I violated those rules per the guideline, my deepest apologies.
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Duriel Taylor
OP
Realtor · FL · Member since 2013 · 372 posts · 83 votes
7y
@Steve Vaughan thank you for your feedback. Your story is interesting, I would have to go out of my state for flipping opportunities with decent returns. I agree with you in most of what you stated. Finding deals is all about relationships, I guess that's where I am lacking.
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Eric Sullivan
Developer · Salem, MA · Member since 2018 · 83 posts · 68 votes
7y
Originally posted by @Duriel Taylor:

@Eric Sullivan thank you for your feedback. I love REI too much to consider anything else. The lending to flippers maybe the quickest way, I agree; however the risk is there then I would have to potentially finish the project while being at the mercy of the market (at that time).
That's investing man. No guarantees and always some level of risk involved.
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Liz S.
Delaware, OH · Member since 2018 · 15 posts · 4 votes
7y
@Mindy Jensen does “deal making” include networking for a possible joint venture? Would like to know the rules moving forward. Thx!
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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
7y
@Liz S. , yes. We consider looking for or offering products, properties, services, loans, partnerships, etc to be advertising. Thanks for asking. Our rules are super-strict, but that's so we can keep out the spam and ads found in more forums.
[email protected]Podcast Guest on Show #261
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